Cryptocurrency Start-Up MoonPay Raises $555 Million In First Funding Round

Cryptocurrency start-up MoonPay has raised $555 million U.S. in its first-ever financing round, valuing the company at $3.4 billion U.S.

Founded in 2018, Miami-based MoonPay’s software lets users buy and sell cryptocurrencies using conventional payment methods such as credit cards, bank transfers or mobile wallets Apple Pay and Google Pay.

The company also sells its technology to other businesses including cryptocurrency website and non-fungible token (NFT) marketplace OpenSea, a model MoonPay Chief Executive Officer (CEO) Ivan Soto-Wright calls “crypto-as-a-service.”

With prices of Bitcoin and other cryptocurrencies hitting all-time highs recently, venture capital investment in the start-ups powering the market is booming. Investors are looking for the next Coinbase after the crypto exchange giant’s blockbuster initial public offering in April.

MoonPay’s pitch to investors is that it offers a “gateway” to digital assets. For now, that includes Bitcoin, Ethereum and other digital tokens. The company has said that it wants to expand the platform to include everything from digital fashion to tokenized stocks.

MoonPay says it has been profitable since launching its platform in 2019. The firm is on track to hit $150 million U.S. in annual revenue this year after transaction volumes skyrocketed 35-fold from 2020. Its service is now used by more than seven million customers.

Looking ahead, MoonPay plans to spend the money raised in its funding round on new products and expansion. The firm says it plans to eventually go public via an IPO.