Bitstamp crypto exchange to raise funds for global expansion: Report
One of the world’s oldest cryptocurrency exchanges, Bitstamp, is trying to scale its operations with new fundraising advised by Galaxy.
Bitstamp, one of the world’s longest-running cryptocurrency exchanges, is moving forward with its global expansion ambitions, reportedly working to raise new funds to scale the operations.
Crypto exchange Bitstamp started the fundraising process in late June, with Michael Novogratz’s Galaxy Digital Holdings acting as an adviser, Bloomberg reported on Aug. 7.
The firm plans to use the raised capital for operations like launching derivatives trading in Europe next year and expanding several of its served markets in Asia. Bitstamp is also looking to scale its services in the United Kingdom, the report notes.
Bitstamp’s global chief executive officer Jean-Baptiste Graftieaux reportedly said that the company is now exclusively focused on raising money to expand the services to retail and institutional crypto clients. He added:
“Bitstamp is not for sale, and we are not actively looking to sell the company.”
The crypto exchange did not immediately respond to Cointelegraph’s request for comment.
The news comes a few months after major blockchain firm Ripple acquired a minority stake in Bitstamp in the first quarter of 2023. Novogratz’s Galaxy also acted as an advisor on the deal, which was publicly announced in late May.
Bitstamp’s latest efforts to scale its business come in line with its global expansion plans announced in 2018, when the firm was acquired by South Korean NXC-backed NXMH.
Back then, Bitstamp co-founder Nejc Kodrič claimed that he and another Bitstamp co-founder, Damijan Merlak, “were not looking to sell,” and “were definitely not looking for investment’ because they “didn’t need to raise the capital.” However, Kodrič still took the opportunity to cash out on the majority of his Bitstamp stock while keeping 10% and remaining the CEO.
Related: Gemini plans Asia-Pacific expansion as part of ‘next wave of growth for crypto’
Founded in 2011 in Slovenia, Luxembourg-based Bitstamp was once a major venue for Bitcoin (BTC) trading, serving as an option to then-dominant Bitcoin exchange Mt. Gox. Bitstamp is now one of the world’s largest crypto exchanges, with about $127 million in trading volume in a recent 24-hour period, according to data from CoinGecko.
In June, Bitstamp’s United Kingdom arm joined the list of registered firms under the country’s Financial Conduct Authority.
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