Binance US (@BinanceUS) is reportedly seeking to raise up to $100 million in a private funding round, as the exchange tries to rebuild its US business after years of regulatory pressure. Bloo
Binance US (@BinanceUS) is reportedly seeking to raise up to $100 million in a private funding round, as the exchange tries to rebuild its US business after years of regulatory pressure. Bloomberg reported that the company is targeting a valuation of about $1 billion, citing a person familiar with the matter.
The target is well below the $4.5 billion pre-money valuation attached to the exchange's last funding round. According to Quartz, citing Bloomberg, Binance US raised more than $200 million in 2022 at that valuation. A $1 billion valuation would represent a cut of roughly 78%, according to FinanceFeeds.
The fundraising is part of an effort to regain market share lost after the 2023 settlement between Binance Holdings and US authorities, Cointelegraph reported. Under that agreement, Binance Holdings agreed to pay $4.3 billion in penalties and accept additional oversight, while Changpeng Zhao pleaded guilty to a felony charge.
Binance US was launched in 2019 and operates separately from the global Binance exchange, though Zhao holds significant ownership stakes in both, Quartz reported.
Bloomberg's report, as relayed by Quartz, said the exchange aims to have some of its state money-transmitting licenses reinstated as it grows its US footprint. It has also discussed drawing on outside liquidity providers, with Binance's global platform among the options. No approach has been decided.
World Liberty Financial, the crypto venture co-founded by President Donald Trump, was informed of the raise but is not participating, according to the same reporting. Bloomberg also noted that the size, valuation and investor makeup of the round could still change before it closes.
Other coverage of the report points to possible expansion into prediction markets, though Crypto Times noted that no launch timeline has been disclosed. Spokespeople for Binance US and World Liberty Financial declined to comment, per the same report.
The round comes as crypto firms look to benefit from a shifting US regulatory climate, and as Binance US competes with larger domestic rivals for digital-asset customers.
Bloomberg: Binance.US Seeks $100 Million to Expand Its Crypto Business
Quartz: Binance.U.S. seeks up to $100 million in private funding round
Cointelegraph: Binance.US seeks $1B valuation in potential $100M funding round
