Wintermute, a leading algorithmic crypto trading firm, is reportedly in talks to raise between $100 million and $300 million, with Tencent among the interested investors.
Points
- Wintermute seeks to raise $100 million to $300 million
- Tencent is one of the potential investors
- Wintermute’s valuation could reach approximately $2 billion
- Wintermute provides liquidity to over 50 cryptocurrency exchanges
- The firm has facilitated about $5 trillion in cumulative trading
Algorithmic crypto trading firm Wintermute is in discussions with investors to raise new capital, potentially between $100 million and $300 million, according to recent reports. Chinese social media conglomerate Tencent is among the interested investors, as reported by Bloomberg and The Information on July 19. If successful, the deal could value Wintermute at around $2 billion.
Wintermute is a rising force in crypto
Based in the United Kingdom, Wintermute provides liquidity to over 50 cryptocurrency exchanges and trading platforms. The firm has facilitated approximately $5 trillion in cumulative trading, with this amount doubling in the last two years. Wintermute’s last fundraising was in January 2021, where it raised $20 million in a Series B round led by Lightspeed.
Beyond providing liquidity, Wintermute is also an active investor in the crypto space. In 2024, it has invested in projects such as the Analog cross-chain communications tool, the Backpack crypto exchange, Ethereum scaling solution Taiko, the Agora digital dollar, and the M^0 stablecoin issuance platform. Additionally, Wintermute has expressed interest in acquiring the dYdX derivatives trading software.
Tencent easing into the crypto sphere
Tencent, known for developing the WeChat messaging app and publishing a wide range of video games, has recently ventured into artificial intelligence and operates a competitor to ChatGPT in China. Since September 2023, Tencent has been collaborating with the TON Foundation and Telegram on mini apps through its Tencent Cloud subsidiary. The company has also invested in the non-fungible token （NFT） scaling solution Immutable and was a major investor in the Australian blockchain-based logistics company Everledger.
Tencent and Wintermute did not immediately respond to requests for comment.
解説
- Capital raising: Wintermute’s efforts to raise between $100 million and $300 million reflect its growth ambitions and need for additional capital to expand its operations.
- Tencent’s involvement: Tencent’s interest in investing in Wintermute highlights the growing intersection between traditional tech companies and the crypto industry.
- Liquidity provision: Wintermute’s role as a major liquidity provider underscores its importance in the crypto trading ecosystem.
- Investment strategy: Wintermute’s active investments in various crypto projects demonstrate its commitment to supporting and growing the digital asset space.