Key Takeaways
- The latest post-raise valuation of HashKey stands at $1.2 billion.
- The specific identities of institutional investors were not disclosed.
Hong Kong-based cryptocurrency exchange HashKey has triumphantly revealed that it has not only met but surpassed its ambitious fundraising target of $100 million. The company, in an announcement on Tuesday, shared that the feat was accomplished through the support of significant institutional investors and leading Web3 institutions, although their specific identities were not disclosed.
This triumphant fundraising round has catapulted HashKey Group into the esteemed status of a “unicorn” within the venture capital realm. The term “unicorn” is reserved for startups valued at over $1 billion, and HashKey’s claimed pre-money valuation firmly establishes its position in this exclusive club.
The substantial funds procured through this round are earmarked for various strategic initiatives across HashKey Group’s diverse business arms. These include bolstering asset management, enhancing blockchain node validation services, advancing tokenization services, and nurturing a dynamic Web3 incubation arm.
The fundraising endeavor was initially unveiled in August, a pivotal moment for HashKey Group as it had recently secured a license from Hong Kong’s security regulator, allowing it to offer retail crypto trading services. At that time, the specific investors participating in the funding round were not disclosed. However, the latest post-raise valuation now stands at an impressive $1.2 billion, solidifying HashKey’s status as a unicorn.
This achievement unfolds against the backdrop of a challenging landscape for the broader crypto fundraising industry. In the third quarter of 2023, crypto fundraising experienced a three-year low, amounting to $2.1 billion across 297 deals. This downturn, the smallest since Q4 2020, was notably influenced by the collapse of FTX, prompting a shift in market focus towards early-stage and infrastructure projects.
HashKey’s journey to unicorn status aligns seamlessly with its success in becoming a licensed exchange sanctioned by the Hong Kong Securities and Futures Commission (SFC) back in August. Alongside OSL, HashKey now stands as one of only two exchanges permitted to serve Hong Kong’s retail investors. This strategic move reflects Hong Kong’s proactive approach in embracing the crypto industry, addressing market demands for alternative assets, and fostering the development of Web3 in the Asian financial hub.
In a statement on Tuesday, HashKey Group expressed gratitude to both existing and new investors who played a pivotal role in the funding round. While specific contributors remained undisclosed, the company outlined its plans to deploy the capital towards expanding its Web3 ecosystem and developing licensed products in Hong Kong.
