South Korean cryptocurrency exchange Bithumb has secured $200 million in fresh funding from a Japanese blockchain investment fund as part of a wider Series A funding round, according to media reports.
According to a Cointelegraph report, the exchange, considered one of Korea’s largest, secured the money from ST Blockchain Fund, a blockchain investment fund based in Japan. The fund includes contributions from investors in the United States and Europe, with a specific focus on backing blockchain companies.
In a press release, Bithumb’s parent company Blockchain Exchange Alliance (BXA) said the funding would help fuel the company’s international growth, as well as funding the launch of new currency trading pairs.
Welcoming the investment, BXA said the fund was a suitable investment partner for Bithumb, with a shared vision of a truly global exchange platform. It noted, “The fund shared our vision of creating a global digital exchange platform that can efficiently transfer value across borders with lower costs, which was the key rationale behind this investment decision.”
The announcement comes as a vote of confidence in Bithumb after a challenging period for the company which saw losses totaling $180 million through 2018.
In addition to ongoing unrest in crypto markets led by the decline of BTC, the company also fell victim to a number of damaging hacks, undermining investor confidence in the exchange. In March, a $13 million attack hit the exchange, said to have been the result of an inside operation. This follows on from a previous $17 million hack earlier in the year, revised down from initial projects of $30 million.
In securing the funding, Bithumb appears well positioned to attempt to reverse its fortunes, and become one of the few crypto exchanges to enjoy a period of growth through the crypto bear market.
Whether Bithumb can overturn last years’ substantial losses remains to be seen. But with the fresh backing of ST Blockchain Fund and others as part of the Series A round, the company now has additional financial resources to see it through its next phase of growth.
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.