(Bloomberg) -- Gemini Trust Co., the cryptocurrency exchange founded by Tyler and Cameron Winklevoss, is seeking to raise $400 million in a round of funding that would value the company at about $7 billion, according to people with knowledge of the matter.
The people asked not to be identified because the information is private.
Gemini is set to join a slew of crypto-related companies, including bigger rival Coinbase Global Inc. and ConsenSys Inc., in taking advantage of favorable market conditions and increasing interest from mainstream investors to raise money. Bitcoin hit an all-time high of $68,991 on Nov. 10 before giving back some gains in recent days.
No plans are finalized and the terms can still change. A spokeswoman for New York-based Gemini didn’t immediately respond to a request for comment.
Crypto startups’ valuations are ballooning, and new funding can help with acquisitions or with hiring staff as businesses expand internationally or look to introduce new products. The extra funds can come in handy amid growing competition, and as more retail investors and institutions dive into crypto.
The Winklevoss twins, who first became known when they challenged Mark Zuckerberg over the mantle of who invented social network Facebook, are early Bitcoin investors and believers. In addition to investing in crypto-related startups, they’ve built Gemini into a compliance-focused crypto exchange. Gemini recently had about $268.3 million in daily spot volume, per tracker CoinMarketCap.com, as compared with larger rival Binance at $30.2 billion.
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