Leading cryptocurrency tax services provider TaxBit has announced the completion of a Series B funding round that saw it raise $130 million from several old and new investors.
According to a Bloomberg report today, venture firms IVP and Insight Partners co-led the recently concluded funding round.
Other investors in the round include Tiger Global Management, Paradigm, 9Yards, Sapphire Ventures LLC, Madrona Venture Group LLC, and Anthony Pompliano, co-founder of Morgan Creek Digital Assets and a crypto evangelist.
With the addition of a fresh $130 million to TaxBit’s purse, the company’s valuation has increased to more than $1.3 billion, the report added.
The fund would come in handy for TaxBit’s expansion plans, given that it is committed to doubling its workforce from 100 employees to 200 by year-end, and will also help it open new offices across the U.S. and the U.K.
TaxBit’s Past Rounds
This is not the first funding that the Utah-based company has raised for the year.
Back in March, TaxBit announced that it raised a $100 million Series A funding round led by Paradigm and Tiger Global, with the firm revealing at the time that the round also featured other investors, including PayPal and Coinbase.
Meanwhile, TaxBit raised $5 million in a Seed funding round last January to help U.S. cryptocurrency traders comply with the country’s tax authorities.
Interestingly, the firm’s services have become one of the most sought after, especially now that the Internal Revenue Services (IRS) is requesting that all crypto-related transactions above $10,000 should be reported to the tax authorities.
TaxBit’s Services Highly Needed Amid U.S. New Tax Regulation
The new tax requirement has prompted several cryptocurrency exchanges and tax authorities to consider partnering with TaxBit.
TaxBit has so far partnered with FTX U.S., which would enable the cryptocurrency exchange’s clients to gain access to the company’s Tax Center Suite.
Austin Woodward, TaxBit’s CEO, noted that the firm will be announcing its partnership with top cryptocurrency exchanges and banks in the coming weeks.
With more investors flocking to the cryptocurrency market to have a piece of the latest rally, it is evident that computing traders’ tax could be cumbersome for trading platforms, which has made TaxBit the favorite choice for most firms.
“In the digital asset space, the transaction volumes are so much more voluminous, [which made it] evident that software needs to solve this problem,” Woodward said in an interview.
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