Crypto Exchange Bitstamp Raises More Funds for Expansion

Amid all the regulatory developments across the world, crypto exchange Bitstamp is looking to expand its global footprint and is in talks to raise more funds.

Jean-Baptiste Graftieaux, Bitstamp’s global chief executive officer said that they started the fundraising process in late June under the guidance of Mike Novogratz’s Galaxy Digital Holdings. The exchange plans to use the funds to expand its services in Europe and Asia.

Bitstamp is planning to launch crypto derivatives trading in Europe next year while expanding in several other markets in Asia. Besides, it also plans to increase its operations in the U.K. Speaking on the development, Graftieaux said:

“Bitstamp is not for sale, and we are not actively looking to sell the company. Our current and exclusive priority is to raise money through strategic investors to accelerate Bitstamp’s growth by providing new products and services to retail and institutional crypto customers.”

Previously, Galaxy Digital has also served as an adviser to Pantera Capital. Earlier this year, Pantera sold its minority stake to Ripple.

Bitstamp’s Strong Market Presence

Based out of Luxembourg, the crypto exchange Bitstamp was established in 2011. It was a significant platform for trading Bitcoin, competing with Mt. Gox. Today, it is the seventh-largest exchange globally, with around $126 million in trading volume within 24 hours, according to Coinmarketcap.com data. In 2018, European investment firm NXHM acquired Bitstamp.

Bitstamp also has a valuable license called BitLicense, which allows its American unit, Bitstamp USA, to operate in New York state. This license has been essential for its success in the US, where it gained market share this year, while other exchanges like Binance US experienced a decline in market share.

More and more players are willing to grab a share of the crypto derivatives market. This is especially true with the collapse of the crypto exchange FTX, which was a dominant player along with Binance. Other big players like Gemini and Coinbase launched their derivatives exchanges offshore, earlier this year.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.