Crypto Custody Platform Anchorage Digital Raises $350 Million at $3 Billion Valuation
Anchorage Digital Raises $350 Million in Funding Pushing Valuation
Anchorage Digital has raised $350 million in the latest Series D funding round led by private equity firm KKR & Co Inc, Reuters reported Wednesday. The latest funding reportedly pushed the company’s valuation to a roughly $3 billion valuation.
Goldman Sachs, Andreessen Horowitz, Apollo credit funds, and Wellington Management, among other investors, also participated in the financing round. All of them have an equity stake in the digital asset firm, according to the report.
“We wanted to make sure that all these big investment names are in our corner because Anchorage is expanding really heavily toward larger financial institutions,” Diogo Mónica, president and co-founder of Anchorage, told Reuters.
The company would use the Series D funding in part to expand its crypto offerings to international expansion. In addition, the funds will be used to enhance its infrastructure solutions, specifically for “global financial firms and financial tech innovators”.
Anchorage was the first crypto firm to receive a U.S. federal banking charter from the Office of the Comptroller of the Currency, making Anchorage the first nationwide digital asset bank. The firm raised an $80 million Series C in February but did not disclose the valuation at that time.
Investing via Next Generation Technology Growth Fund II
KKR invested in Anchorage through its Next Generation Technology Growth Fund II, a fund dedicated to growth equity investment opportunities in the tech space. This is the first direct equity investment in a digital asset company, KKR said.
In September, the firm made its first blockchain-related investment in the flagship fund of ParaFi Capital, which focuses on DeFi facilitating crypto-denominated lending outside traditional banking.
The U.S.-based private equity firm is also working on establishing a working group dedicated to determining the best use cases for blockchain technology.