Bitcoin Suisse, a crypto-financial firm based in Switzerland, has announced a Series A funding round with a target to raise CHF 275 million to grow its profile to the banking sector in Liechtenstein and Switzerland.
According to the May 8 report, the Crypto Valley-based firm said that it is hoping to raise a minimum of CHF 100 million. The Studer Family Office and Swiss banker Roger Studer have already funded approximately CHF 20 million in the first funding round.
Since 2019, the firm has been licensed as a Swiss bank.
“As Bitcoin Suisse transitions into becoming a Swiss bank, company equity solidly above CHF 100m will provide a strong and profitable balance sheet,” said CEO Arthur Vayloyan. “The Series A round opens the way to greatly accelerate and grow the business volume of Bitcoin Suisse, as well as its profitability.”
Bitcoin Suisse Intends to Become a Unicorn
Bitcoin Suisse is also looking to accomplish unicorn status by 2025. The company intends to achieve this by transforming its Liechtenstein operations into an entirely operational bank.
Currently, almost 140 employees are working for the firm across offices in Liechtenstein, Denmark, and Switzerland. In 2019, Bitcoin Suisse’s monthly revenue generated was almost CHF 1.7 million, and during the first quarter of 2020, the figure has grown to CHF 1.8 million.
Bitcoin Suisse funding operations come during a time of pandemic-created market turbulence.
However, despite the outbreak, people are investing money into cryptocurrency firms’ equity. In April, Crypto Finance AG successfully conducted its Series B funding round and raised more than $14.5 million. Furthermore, Taurus Group, a crypto infrastructure firm, has raised $11 million in Series A, funded by Arab Bank Switzerland.
Overvaluation has been an issue in the cryptocurrency space for long. While ICO overvaluation may have passed, equity overvaluation seems to be the new trend, with firms with no proven record of profitability operating in a difficult regulatory environment targeting billion-dollar valuations.