Mercado Bitcoin Parent Company 2TM Raises $50M, Further Endorsing Unicorn Status
Series B follows 2TM’s $200 million SoftBank-led investment in July 2021 which boosted the company’s valuation to $2.1 billion.
Mercado Bitcoin, a cryptocurrency exchange, has acquired $50.3 million in new funding to extend its operations around Latin America, signaling that venture capitalists perceive the region as having significant development ability.
According to the company, 10T and Tribal Capital from the United States, as well as Traders Club, Pipo Capital, and Endeavor from Brazil, participated in the Series B fundraiser.
2TM’s status as a crypto unicorn has been cemented by this funding round, which comes after the business raised $200 million from SoftBank in July, this year. Mercado Bitcoin was the second Latin American bitcoin exchange to reach a valuation of $1 billion at the time.
“Brazil’s first #Bitcoin exchange, Mercado Bitcoin, just raised $200 million from SoftBank!” tweeted Bitcoin Archive (@BTC Archive) on July 1, 2021.
According to the group, Mercado Bitcoin already has over 3.2 million customers, which is nearly 80 percent of all individual accounts active on the Brazilian stock exchange. According to 2TM CEO Roberto Dagnoni, trade volumes hit $7 billion from January to October 2021.
At a time when Latin American economies are grappling with hyperinflation and other budgetary difficulties, Mercado’s rising user base demonstrates increased customer interest in digital asset investing. Regulators in Brazil, where Mercado Bitcoin is based, have backed legislation that will enable the continued expansion of cryptocurrency investing. BTG Pactual, a leading investment bank, has recently established a new portal to help consumers access cryptocurrencies like Bitcoin (BTC) and Ether (ETH).
When asked what other factors are driving crypto adoption in the region, a spokeswoman for Mercado Bitcoin informed Cointelegraph that motivations vary by country. “In Brazil, for example, the key driver is as an alternative investment class,” according to the representative. “Remittances account for a major portion of the overall volume of drivers in Mexico. Stablecoins are being used much more widely in Argentina to protect against currency fluctuations.”
There are already dozens of high-profile unicorns in the cryptocurrency market, as well as at least three multibillion-dollar investment funds. Former Citibank Exec Matt Zhang has formed a $1.5 billion crypto venture fund to back promising plays in the realms of blockchain infrastructure, virtual worlds, and programmable money.