Thursday, December 26

Crypto liquidity hub Wintermute reportedly in talks with Tencent to raise up to $300m

Algorithmic crypto trading firm Wintermute is reportedly in discussions with Chinese giant Tencent and other investors to raise up to $300 million.

Wintermute, a high-frequency trading and market-making firm in the crypto space, is in talks with multiple investors about a new funding round. The company is looking to raise up to $300 million including existing shares, Bloomberg reports, citing sources close to the matter.

According to the report, the London-headquartered firm, founded by Evgeny Gaevoy, is in talks with Chinese multinational conglomerate Tencent and other investors about potential funding at a valuation of roughly $2 billion.

While specifics about the funding remain undisclosed, sources indicate that Wintermute’s early investors might sell some shares, potentially bringing the total deal size up to $300 million. Earlier, The Information reported that the firm is seeking to attract $100 million. As of press time, Wintermute has made no public statements on the matter.

The new funding would follow Wintermute’s $20 million Series B round in January 2021, led by Lightspeed Ventures, with participation from Pantera Capital and Hack VC.

Founded in 2017, Wintermute operates as an algorithmic trading firm providing liquidity for crypto businesses such as Binance, Coinbase, Bybit, and Uniswap, among others. In September 2022, Wintermute suffered a loss of over $160 million due to a hack attack. Later on, blockchain researchers raised concerns about the nature of the attack, suggesting that the incident was likely an inside job.

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