CEO says Bitstamp raises fresh funding, but not for sale
Bitstamp, one of the earliest cryptocurrency exchanges in the industry, is actively pursuing a funding round to facilitate its expansion into new global markets. The CEO of Bitstamp, Jean-Baptiste Graftieaux, has confirmed that the exchange initiated the fundraising process a few weeks ago, with Galaxy Digital Holdings serving as its advisor.
The fresh funds garnered from the funding round are earmarked for several expansion initiatives. Bitstamp intends to introduce a licensed derivatives trading service in Europe next year. Furthermore, the exchange aims to broaden its market reach across Asia and reinforce its operations in the United Kingdom.
“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,” said Bitstamp’s global CEO Jean-Baptiste Graftieaux
Earlier in June, Bitstamp won regulatory approval from the Financial Conduct Authority (FCA), allowing the exchange to continue serving UK-based customers. With this registration, Bitstamp now holds a total of 52 global licenses.
Galaxy Digital Holdings is said to be actively involved in advising Bitstamp in this fundraising endeavor. The capital raised will be instrumental in realizing Bitstamp’s strategic vision of enhancing services for both retail and institutional clients in the crypto sector.
Ripple reportedly acquired a stake in Bitstamp. Although Ripple has not officially disclosed details about the transaction, the information surfaced through Galaxy Digital’s most recent quarterly report. Specifically, the company advised crypto hedge fund Pantera Capital on the sale of Bitstamp shares to Ripple during the first quarter. This confirmation was reiterated by Galaxy Digital’s CIO, Christopher Ferraro, during a conference call with shareholders earlier this month.
Nevertheless, the details regarding the reasoning behind Galaxy Digital’s advice to Pantera Capital were not explicitly mentioned. As such, the lack of clarity has led to speculation among observers regarding the intentions of the involved parties in this transaction.
Bitstamp currently holds the position of the second-largest market for Ripple’s token, XRP, trailing only behind Binance. Furthermore, the exchange has historically served as a gateway for facilitating access to the RippleNet network. Presently, XRP represents a substantial portion, accounting for 30% of the total trading volume on Bitstamp.
Pantera Capital made a notable investment in Bitstamp back in 2013, purchasing approximately $10 million worth of Bitstamp shares. This acquisition took place shortly before Bitstamp established itself as a prominent player in the cryptocurrency exchange industry.