Wintermute Trading Ltd., a preeminent player in the crypto trading arena, is currently in advanced negotiations with investors, including Tencent Holdings Ltd., to secure funding that could value the firm at an impressive $2 billion, according to insiders.

The transaction may also permit early backers and employees to divest a portion of their holdings. Coupled with fresh capital injection, the aggregate deal size is projected to range between $200 million and $300 million, these sources reveal.

Wintermute, renowned as a leading market maker within the cryptocurrency sector, is capitalizing on a resurgence in digital asset enthusiasm, spurred in part by speculations surrounding former President Donald Trump’s crypto-amicable stance. A valuation nearing $2 billion would mark this as one of the most significant crypto venture deals of the year.

While specifics of the arrangement remain fluid and could evolve, the anticipated magnitude of the deal underscores Wintermute’s pivotal role in the market. Preliminary reports suggest that the firm is contemplating a share sale approximating $100 million.

Requests for comment from Wintermute and Tencent went unanswered.

Under the stewardship of CEO Evgeny Gaevoy, the London-based entity operates across over 50 platforms, including major exchanges like Binance, Bybit, and Coinbase. Wintermute’s cumulative trading volume has soared to nearly $5 trillion, a figure that has approximately doubled in the last biennium, per company disclosures.

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The firm’s extensive portfolio includes over 100 venture capital engagements, further cementing its integral role in the crypto ecosystem.

In May, Wintermute secured a significant position in Hong Kong’s nascent spot-crypto ETFs, committing to provide liquidity for exchanges such as OSL and HashKey, thereby ensuring the seamless transaction and delivery of Bitcoin and Ether to support ETF share creation and redemption.

Wintermute’s last funding round, a $20 million Series B in January 2021, was spearheaded by Lightspeed Ventures with contributions from prominent crypto investors including Pantera Capital and Hack VC.

Tencent, a titan in the Chinese tech industry and the force behind the ubiquitous WeChat platform, has previously ventured into blockchain investments, backing entities such as Everledger and Immutable, as documented by The Block Pro.

In an ever-evolving digital landscape, Wintermute’s strategic maneuvers and robust market presence position it as a formidable force, poised for continued growth and innovation.