Bitstamp in Talks to Raise Funds for Europe, Asia Expansion

Bitstamp began the fundraising since June

Luxembourg-based crypto exchange, Bitstamp, is actively exploring avenues to secure additional funding for expansion, revealed Jean-Baptiste Graftieaux, the global CEO of the platform. As reported by Bloomberg, discussions about fundraising commenced at the end of June, with advisory support from Galaxy Digital Holdings. 

The new funds are earmarked for various operational endeavors, including the planned introduction of derivatives trading in Europe by next year. Additionally, Bitstamp intends to broaden its market presence in Asia and the United Kingdom, as well as amplify its service offerings across different markets.

“Bitstamp is not for sale, and we are not actively looking to sell the company,” stated Graftieaux. “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.” 

Galaxy Digital Holdings, a key player in the industry, was previously involved as an adviser in the sale of a minority stake in Bitstamp by Pantera to Ripple earlier this year.

Having emerged in 2011 as an alternative to the then-dominant Mt. Gox, Bitstamp is currently ranked 7th, boasting approximately $130 million in trading volume in the last 24 hours, as per data from Coinmarketcap. The exchange, which became part of the European investment firm NXMH in 2018, has now positioned itself as a crucial player in the cryptocurrency landscape, especially with its BitLicense permitting it to operate in New York.

The cryptocurrency landscape is witnessing an emergence of platforms diversifying into the derivatives space, previously dominated by now-defunct FTX and Binance. Both Coinbase Global Inc. and Gemini launched offshore derivatives exchanges this year, signaling a dynamic shift in their business models.

After surviving the substantial market downturn of 2022, crypto firms are engaging in strategic dealmaking endeavors to fortify their financial positions, positioning themselves favorably for the anticipated industry resurgence.