Binance.US Targeting $50M Follow-On Raise at $4.5B Valuation

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Binance.US, the American arm of the crypto exchange giant, is looking to raise up to $50 million in additional funding at a $4.5 billion valuation in what would be a continuation of the exchange’s seed round, according to people familiar with the matter.

The company previously closed a $200 million seed round at a $4.5 billion valuation in April. The raise will target "strategic partners" and would not represent a new Series A round, the people said. Binance.US declined to comment.

Since April, cryptocurrency markets have seen a sharp downturn, fueled by several high-profile blowups, liquidity crises and macroeconomic events.

Binance.US’s raise comes on the heels of last month’s unraveling of Terra’s UST stablecoin, as well as two high-profile events this month – crypto lender Celsius halting customer withdrawals and crypto investment firm Three Arrows Capital facing rumored insolvency.

Binance.US CEO Brian Shroder told tech outlet Protocol last week that the soon-to-be-announced fundraise will have the company “entering the crypto winter from a position of strength.”

“Investors are not scared from investing in us further,” Shroder added.

Read more: Binance.US Raises First Funding Round at $4.5B Valuation

Investors in Binance.US’s seed round included Circle Ventures, VanEck and RRE Ventures, according to the April announcement and Crunchbase data.

Crypto companies have become more cash-conscious in the bear market and some are taking up opportunities to bulk up their war chests.

Competing crypto exchanges Coinbase (COIN), Gemini and Crypto.com have taken on cost-cutting measures, with Coinbase laying off 18% of its staff, Gemini cutting 10% of its workforce and Crypto.com downsizing 5% of employees.