Odaily Frontline｜Bitcoin Suisse seeks financing of nearly 50 million Swiss francs

This article comes fromSwissinfo, by Matthew Allen

Odaily Translator |

Odaily Translator |

Swiss crypto financial services provider Bitcoin Suisse is seeking to raise nearly 50 million Swiss francs to fund its growth ambitions, which include providing banking services in Switzerland and Liechtenstein. The funding round will be a litmus test for investors’ risk appetite for blockchain-based finance amid the novel coronavirus pandemic.

Bitcoin Suisse has previously raised around 20 million Swiss francs in its first round of funding, led by Swiss banker Roger Studer and the Studer family office. Bitcoin Suisse, currently valued at CHF 275 million, has opened a new round of financing to other investors until mid-June, offering up to 20% of the group's shares.

The company, which was founded in Switzerland's Crypto Valley in 2013, announced last year that it would seek banking and securities dealer licenses in Switzerland. Pursuing expansion plans, Bitcoin Suisse is now approaching investors seeking at least CHF 46 million in funding, raising its capital base to CHF 100 million.

The company has set aside additional funds to strengthen proprietary trading, credit operations and future acquisitions. After securing investor funding this year, the company plans to go ahead and launch an STO, sell digital shares to the public, and list on a stock exchange the following year.

"Exponential Growth"

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Niklas Nikolajsen, founder and chairman of Bitcoin Suisse, said his life's work has come a long way. He added: "But going forward, we may face constraints in terms of how fast we can grow. The new capital infusion will help the company continue its exponential growth and expand with cross-border licenses.

The funding round coincides with the coronavirus pandemic that has thrown financial, capital and cryptocurrency markets into turmoil. The cash reserves of many investors have been hit and they are wary of taking more risks.For Bitcoin Suisse, the trump card is an established business with 145 employees, around CHF 1 billion in crypto assets under custody, CHF-backedStablecoin Bondsand other products and cooperation with Worldline。

Bitcoin Suisse earned more than 20 million Swiss francs last year, but that was half the company's turnover at the peak of bitcoin's price in 2017. Business has picked up since the fourth quarter of 2019, reaching record levels last month, the company said. Profits of about CHF 2.4 million in 2019 were also much lower than in the past two years, due to a significant increase in headcount, the cost of applying for a Swiss banking license and acquisitions.

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Fundraising Update

Despite the current economic turmoil, there are signs of investors pouring money into Swiss digital asset companies. In recent weeks, Crypto Finance has raised 14 million Swiss francs, and financial services company Taurus has secured "eight-figure" (approximately $11 million) funding.Digital asset banks Sygnum and SEBA, which received their Swiss banking license last year, have been able to raise higher funds over the past few years. SEBA received a cumulative CHF 100 million in 2018, while Sygnum received a cumulative CHF 60 million, plus。

Partners inject another 'tremendous' amount of money into a partnered digital asset trading ventureIn November last year, SEBA said it hoped that by issuing digital tokens to the public,Raise at least CHF 100 million in the first half of the year

. Its fundraising plans have been delayed until later this year due to market turmoil and dampened investor risk appetite.

Sygnum is also seeking an undisclosed amount of new funding from existing investors this year to pay for its own expansion plans.