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.