Bitwise raises $70 million in Series B at a $500 million valuation

Bitwise Asset Management, a digital asset management firm, raised $70 million in a Series B round. Investors valued it at $500 million.

We are excited to announce the completion of a new funding round, including participation from investors across tech, crypto, and finance. The round follows a year of tremendous growth for Bitwise, and we look forward to building on this momentum! https://t.co/GGFWlLuD42 pic.twitter.com/Vyfdo7mgIC

— Bitwise (@BitwiseInvest) June 15, 2021

The round was led by venture firm Electric Capital and angel investor Elad Gil. The company was also backed by Henry Kravis, founder of KKR; Dan Loeb’s Third Point hedge fund; Robert Leshner, founder of Compound; David McCormick, head of Bridgewater; billionaire Stanley Druckenmiller, and other investors.

Bitwise will deploy the funds to strengthen its balance sheet, attract new users, develop the research team, and expand the sales, marketing and customer service teams.

We’re hiring!
Marketing, Engineering, Research, Sales#cryptojobs https://t.co/FnRyopedr1

— Bitwise (@BitwiseInvest) June 14, 2021

In an interview with CNBC, Bitwise CEO Hunter Horsley said the company did not need additional financing. As of Q1 2021, assets under management exceeded $1.2 billion. The firm also turned a profit then.

According to Horsley, the fundraising round drew the attention of major players in traditional markets. He noted that this would make it easier for the company to promote its products on Wall Street.

“We wanted to attract the best minds, investors and other supporters of cryptocurrency from Wall Street, because we see an opportunity to build a durable organization,” the CEO added.

In May 2021, the Bitwise Crypto Industry Innovators ETF began trading on the New York Stock Exchange under the ticker BITQ, comprising stocks of 30 publicly traded companies in the cryptocurrency industry.