Bitcoin Suisse opens Series A fundraising as it seeks banking license

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Bitcoin Suisse is seeking to raise over $51 million in a Series A funding round, the company has revealed. The Swiss digital currency services provider will be selling a 20% stake in its holding company, BTCS Holding AG. The funding round will run from May 11 to mid-June, the company revealed in a press release shared with CoinGeek.

In its first-ever capital raise, Bitcoin Suisse will welcome investment from accredited and professional investors. The minimum investment will start at CHF 250,000 ($257,000), with the investors being entitled to full voting and dividend rights.

The company has already raised $20.6 million from friends and family before the round was open to the public. This funding was led by Roger Studer, a former investment banker and the current chairman of the Studer Family Office.

Founded in 2013, Bitcoin Suisse is a digital currency services firm, offering custody, brokerage, trading, lending, tokenization and staking of digital currencies. It currently has close to 150 members of staff, with over $1 billion in assets under custody.

It has sought to expand its reach via the acquisition of a banking license in Switzerland and Liechtenstein. The licensing in Switzerland has been ongoing since October 2019.

CEO Arthur Vayloyan said, “As Bitcoin Suisse transitions into becoming a Swiss bank, company equity solidly above CHF 100m will provide a strong and profitable balance sheet. The Series A round opens the way to greatly accelerate and grow the business volume of Bitcoin Suisse, as well as its profitability. It is the right move for the company, and it is an excellent opportunity for investors to join an extraordinary journey.”

The fundraising comes at a time when the COVID-19 pandemic has caused upheavals globally and made many investors wary of their investments. However, at a time when many sectors face uncertainties, Bitcoin Suisse could provide investors a great opportunity. In 2019, the company generated over $21 million in revenues, with $2.5 million in profits. The company embarked on a hiring spree and made a number of acquisitions which ate into its profits.

Based in Zug—better known as the Crypto Valley—Bitcoin Suisse has grand plans for the future. As Swiss Info reports, the company projects that it will be a unicorn (valuation of at least $1 billion) by 2025.  In 2021, the company will reportedly issue a security token offering (STO), with plans to list on a stock exchange the year after.