Gemini Raises $400M to Bring Valuation Over $7B
The seven-year-old crypto exchange was founded by twin brothers and early Bitcoin investors, Cameron and Tyler Winklevoss.
Gemini, in New York; Source: Shutterstock
key takeaways
- The round was led by Morgan Creek Digital with participation from DeFi firm ParaFi Capital
- This year has proven to be the strongest year for crypto capital, with $15 billion in global blockchain funding during the first nine months of 2021, up 384% vs. the entirety of 2020
Crypto exchange Gemini has raised $400 million in funding to bring its valuation to about $7.1 billion, according to the company.
Morgan Creek Digital led Gemini’s first-ever round of outside funding with participation from 10T, ParaFi, Newflow Partners, Marcy Venture Partners, and the Commonwealth Bank of Australia, among others, according to the press release.
Gemini and Morgan Creek Capital did not respond to immediate requests for comment by Blockworks. ParaFi Capital, when reached by Blockworks, declined to comment.
“We are leading the first outside investment in Gemini because of our shared conviction in crypto and belief in the company that Cameron and Tyler are building,” said Sachin Jaitly, General Partner of Morgan Creek Digital, in a press release announcing the funding. “Their vision for the role of crypto in redesigning money, the financial system, art, and the Internet, and their track record of incubating and scaling innovative technologies, gives us confidence in Gemini’s ability to continue to be an industry leader.”
The seven-year-old company was founded by twin brothers and early Bitcoin investors, Cameron and Tyler Winklevoss. Gemini offers services to trade over 50 cryptocurrencies, earn up to 8.05% APY on about 40 different tokens and get up to 3% on crypto rewards through its credit card.
At the end of August, the company wrote that its customers were earning interest on over $3 billion in loans through its Gemini Earn product.
The brothers are expected to keep 75% ownership of Gemini after the capital raise, increasing their total net wealth 75% from $6 billion in April to $10.5 billion today.
As bitcoin’s spot price hit a new all-time high on November 10 around $69,000, companies and investors alike are taking advantage of current market conditions by pumping tons of capital into the crypto space.
This year has proven to be the strongest year for crypto capital, with $15 billion in global blockchain funding during the first nine months of 2021, up 384% vs the entirety of 2020, CB Insights’ blockchain report for Q3 2021 showed.
This story was updated on November 18, 2021, at 5:10 pm ET.
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