Bitpanda, a cryptocurrency trading platform, has tapped investors for a further $263 million, taking advantage of a rebound in cryptocurrencies and surging interest in fintech companies. Since its last funding round closed — just five months ago — the firm’s valuation has more than tripled to $4.1 billion.
The Vienna-headquartered company said Tuesday that its latest fundraising was led by Peter Thiel’s Valar Ventures, which also led the previous round, alongside billionaire financier Alan Howard and REDO Ventures, among others.
Bitpanda, which offers retail trading in crypto, equity derivatives and commodities, said it has three million users and is on track to grow its customer base sixfold year over year.
“Our numbers have increased across the board,” Chief Executive Officer Eric Demuth said in an interview. “User growth, but also revenue have increased a lot.”
The latest fundraising comes as digital assets recover from steep declines earlier this year. The total market value of cryptocurrencies rose above $2 trillion again this month, bouncing back from concerns about increasing regulatory scrutiny from China to the U.K. and the environmental impact of crypto mining.
Demuth founded Bitpanda with Paul Klanschek and Christian Trummer in 2014. The trio still own the majority of the company, according to Demuth. That would give them a combined net worth of more than $2 billion on paper, with Demuth and Klanschek holding more than $800 million apiece, according to calculations by Bloomberg.
Bitpanda’s expansion plans include new offices in Europe and a newly-launched white label service for other finance firms that want to offer trading to their clients.
Bitpanda competes with a fast-growing array of crypto platforms including Coinbase Global Inc. and fintech groups such as Revolut Ltd., which became the most valuable startup in Britain this year with a valuation of $33 billion.
Value spikes for fintechs have been common this year as retail investors race to their services. Sweden’s Klarna more than quadrupled its valuation in less than a year and raised cash at a $45.6 billion valuation in June.