Wintermute’s Ambitious Funding Pursuit

Wintermute Trading Ltd., a prominent cryptocurrency trading firm, is actively engaging with potential investors, including Tencent Holdings Ltd., to secure funding at an estimated valuation of approximately $2 billion, according to sources familiar with the matter.

Transaction Dynamics: Partial Equity Liquidation

The discussions involve early investors and employees potentially liquidating a portion of their shares. Coupled with the capital Wintermute aims to raise through new stock issuance, the total transaction value could range between $200 million and $300 million, these sources indicate. As one of the leading market makers in the cryptocurrency sector, Wintermute is capitalizing on the digital asset resurgence and the invigorated industry optimism linked to the possibility of a crypto-friendly agenda under former President Donald Trump. A valuation in the $2 billion vicinity would position this deal as one of the largest crypto venture capital transactions this year.

Read more: Wintermute Engages in High-Stakes Fundraising with Tencent and Others

Deal Nuances and Potential Adjustments

The specifics of the transaction remain under negotiation, and both the deal size and valuation are subject to potential adjustments. Initial reports from The Information suggested Wintermute is contemplating a share sale worth approximately $100 million. Both Wintermute and Tencent have not provided comments on the ongoing discussions.

Wintermute’s Market Presence and Operational Scale

Under the leadership of CEO Evgeny Gaevoy, Wintermute operates across more than 50 platforms, including major exchanges like Binance, Bybit, and Coinbase. The firm boasts an impressive cumulative trading volume nearing $5 trillion, a figure that has nearly doubled over the past two years, as per data on its website.

In addition to its trading operations, Wintermute has participated in over 100 venture capital investments, further solidifying its influence within the cryptocurrency landscape.

Strategic Roles and Recent Endeavors

In May, Wintermute secured a critical role in the introduction of Hong Kong’s spot-crypto ETFs, committing to provide liquidity for digital-asset exchanges OSL and HashKey. This agreement ensures the seamless purchase, sale, and delivery of Bitcoin and Ether necessary for the creation and redemption of ETF shares.

Historical Funding and Investor Interest

Wintermute last secured capital through a $20 million Series B funding round in January 2021, led by Lightspeed Ventures and supported by notable crypto investment firms such as Pantera Capital and Hack VC.

Tencent’s Potential Blockchain Foray

Tencent, renowned for its popular WeChat platform, is considering extending its reach into the blockchain sector through this potential investment. Although blockchain is not central to its primary operations, Tencent has previously invested in blockchain-related ventures like Everledger and Immutable, demonstrating its interest in the burgeoning sector.