Matrixport, the Singaporean Crypto lending firm, has launched a $100 million funding effort at a $1.5 billion valuation. The company claims it has secured commitments totalling $50 million at the aforementioned value, but it is still on the lookout for other investors to fill out the balance. This round of funding comes on the heels of a $100 million Series C round led by DST Global, C Ventures, and K3 Ventures in August 2021 that gave the company a $1 billion valuation.
Matrixport’s hefty price tag and the market’s fragility
Critics may argue that the valuation is on the higher side, considering the current market conditions exacerbated by the collapse of FTX. How are things at Matrixport, and is the cost reasonable? The firm claims to manage assets worth $10 billion, to have issued loans totalling $700 million, and to employ more than 290 people.
The firm’s high target on the fundraising front does not mean that the company is immune to FTX’s bankruptcy. Matrixport just announced that their Bitcoin-linked fixed-income program has been impacted by the collapse of the exchange. The exposure affected all BTC Fixed Income Products and Victoria BTC Fund Products the company offers. In total, 79 of its customers lost money as a result of the risks associated with these offerings. Matrixport, on the other hand, insists that normal operations have not suffered as a result of the recent events at FTX and that the company faces no risk of collapse.
One of the leading cryptocurrency lenders in Asia, Matrixport provides a full spectrum of cryptocurrency services, including trading, custody, and loans backed by cryptocurrency. The corporation says it maintains a strict separation of its products in light of the intense competition in the market. Since it isolates the underlying asset and fund flow, the impact of a problem with one product does not spread to the others.