Coinbase (NASDAQ: NASDAQ:COIN) is backing Zipmex, a cryptocurrency exchange based in South East Asia. The strategic investment values Zipmex at $400 million.
What Happened: According to The Block, Coinbase was considering an outright acquisition at first. Instead, it took part in Zipmex’s latest round of fundraising, which amounted to about $52 million. Zipmex seeks to raise an additional $40 million in its current Series B+ round.
Zipmex has an array of major institutional investors, including V Ventures, Bank of Ayodhya, Mindworks Capital and B Capital. The company primarily operates in Thailand, despite being headquartered in Singapore, with a digital assets exchange license issued by Thailand’s government.
Why Its Important: With the current state of cryptocurrency markets, major exchanges across the globe have initiated measures of caution. Earlier this month, Coinbase declared a so-called "crypto winter," announcing that they would be revoking accepted job offers and freezing future hiring.
In addition, the company declared a net loss of $430 million in the first quarter of 2022. Therefore, the company's ongoing support of relatively nascent cryptocurrency exchanges such as Zipmex, provides a ray of hope in an otherwise bleak market climate.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.