Cryptocurrency exchanges

SoftBank makes a $200 million investment in the largest cryptocurrency exchange in Brazil

SoftBank, a Japanese financial titan, has invested $200 million in one of Latin America’s major cryptocurrency exchanges.

In a recently completed Series B fundraising, Mercado Bitcoin, Brazil‘s largest crypto exchange, got a $200 million investment from Softbank Group Corp, a Japanese multinational conglomerate holding firm.

The most significant Series B round in Latin America

SoftBank invested in its Latin America Fund, according to a report published on Thursday. As a result, 2TM now has a market capitalization of $2.1 billion, making it Latin America’s second-largest crypto unicorn firm.

The investment came at a time when Mercado Bitcoin had had a solid first half of the year. The trading platform was launched in 2013 and has seen tremendous growth since then.

Between January and May 2021, over 700,000 new consumers joined up to use the company’s services, bringing the total number of clients to 2.8 million. This represents around 70% of the total number of individual investors on the Brazilian stock exchange.

“The platform is quite integrated. So custody is significant in releasing the power of the institutional market. We’re also looking at regional expansions in LatAm and expansions via M&A [mergers and acquisitions].”

Dagnoni said,

2TM now has a market capitalization of $2.1 billion, making it Latin America’s second-largest crypto unicorn firm.

The investment came at a time when Mercado Bitcoin had had a solid first half of the year. The trading platform was launched in 2013 and has seen tremendous growth since then.

Between January and May 2021, over 700,000 new consumers joined up to use the company’s services, bringing the total number of clients to 2.8 million. This represents around 70% of the total number of individual investors on the Brazilian stock exchange.

The exchange also reported that trade volume increased to $5 billion in the first five months of the year, much more than the total amount seen over the previous seven years combined.

A Promising Development for Bitcoin

This is an excellent development because the financing comes when the crypto market is inundated with FUD due to numerous governmental crackdowns, particularly in China.

Since May, when bitcoin underwent a massive deleveraging, the sector has lost billions of dollars. According to reports, Elon Musk’s unexpected concerns about Bitcoin’s energy usage and too many leveraged positions contributed to the downward spiral.

“The platform is quite integrated. So custody is significant in releasing the power of the institutional market. We’re also looking at regional expansions in LatAm and expansions via M&A [mergers and acquisitions].”

Source: https://coindesk-news.com/2021/07/02/softbank-makes-a-200-million-investment-in-the-largest-cryptocurrency-exchange-in-brazil/

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