Japanese multinational investment conglomerate, Softbank Group Corp, has invested $200 million in the second-largest crypto exchange in Latin America, Mercado Bitcoin, via a Series B funding round.
In a Thursday report, the Brazilian cryptocurrency exchange noted that the investment was made from Softbank’s Latin America Fund.
According to Roberto Dagnoni, the CEO and executive chairman of 2TM Group, Mercado Bitcoin’s parent company, not only is this $200 million Softbank’s largest investment in a Latin American company but it also signifies the largest Series B funding round in Latin America’s history.
The just-concluded investment round puts 2TM Group at a $2.1 million valuation, making it the second-largest crypto unicorn in Latin America.
Dagnoni pointed out that Mercado Bitcoin will utilize the funds it has raised to expand its service offerings and provide infrastructure to meet the growing demand for crypto in Brazil.
Additionally, Mercado Bitcoin intends to expand its services to other countries including Mexico, Chile, Argentina, and Columbia through mergers and acquisitions, in addition to getting more customers and product listings.
Mercado Bitcoin’s Impressive Growth
Mercado Bitcoin received this funding following an impressive first half of the year. The company noted that approximately 700,000 new users have signed up to use its services between January and May 2021.
This sharp growth has brought its client base to 2.8 million, which is more than 70% of the entire individual investor base on Brazil’s stock exchange.
Additionally, the company noted that its trading volume within the first five months of the year had surged to $5 billion, which is more than the total value of its trade volume for the first seven years of its existence.
Speaking on the investment, Softbank’s managing partner, Paulo Passoni said,
“At SoftBank, we look to invest in entrepreneurs who are challenging the status quo through tech-focused or tech-enabled business models that are disrupting an industry – Mercado Bitcoin is doing just that.”
Growing Demand for Crypto
Dagnoni further remarked that there is a rapidly increasing demand for crypto as more people realize its potential.
He said,
” Millions of people around the world are realizing that digital assets and cryptocurrencies are both innovative in their technological foundations and are efficient in storing of value, and Brazil is no exception to this trend.”
Just a few weeks ago, El Salvador adopted bitcoin as legal tender, with the president expressing confidence in its potential.
