Novogratz Invests in Bitfury


Cryptocurrency venture Bitfury has completed a private round of financing worth $80 million. The cash will be used to fund hardware and software projects and objectives.

Two weeks ago, Newconomy wrote about Bitfury considering Initial Public Offering (IPO), eventually becoming the first major listing in the cryptocurrency industry. Bloomberg reported that Bitfury could seek a valuation in the amount ranging from $3 to $5 billion.

The company has yet to officially confirm its plans to conduct a public flotation.

“2018 has been a year of incredible expansion for Bitfury. This private placement reflects our achievements, and it recognizes our ability to address adjacent market segments in high-performance computing, including in emerging technologies like artificial intelligence (AI). The institutionalization of blockchain and cryptocurrencies, partnered with the opportunity of these emerging technologies, is a natural expansion opportunity that Bitfury will build on — in 2019 and beyond,” said Valery Vavilov, the CEO, and co-founder of Bitfury.

The latest series of funding was led by Korelya Capital, a Europe-based venture. The statement issued by Bitfury also mentions other global institutional and corporate investors such as Macquarie Capital, Dentsu Inc., Armat Group, Jabre and Lian Group, Argenthal Capital Partners, iTech Capital, MACSF and Foyer, and Galaxy Digital, a specialized digital asset merchant bank led by Mike Novogratz.

“We are excited to partner with Bitfury, a leading solutions provider in blockchain and Bitcoin. We are impressed with Bitfury’s unparalleled team, as well as the company’s vision, technical expertise, and global reach, all of which are essential to advancing the underlying Bitcoin ecosystem,” added Novogratz in the Bitfury’s statement.

This latest round of financing is the fifth since the company was founded, bringing the total number of funds raised to $170 million.