Crypto exchange Coinbase valued at $8bn after funding round

US cryptocurrency exchange Coinbase has raised fresh funds at a post-money valuation exceeding $8bn suggesting investors remain interested in the sector despite sharp declines in the price of many coins.

The California-based company said on Tuesday that it had raised an additional $300m in investment “to accelerate the adoption of cryptocurrencies and digital assets.” The Series E round was led by Tiger Global Management.

“We see tremendous promise in crypto to build the next great phase of the internet,” said Asiff Hirji, chief operating officer, in a blog post.

Coinbase is a major trading venue for cryptocurrencies, including bitcoin, the most actively traded and best known coin. Bitcoin has tumbled from peaks near $20,000 at the end of last year to around $6,200 on Tuesday. Its fall has come amid tighter regulation and persistent concerns over whether mainstream investors will become more deeply involved in the market.

The exchange itself has faced controversy in recent months. In February, Coinbase suffered a flood of criticism after some users reported erroneous charges on accounts they used to purchase coins at the exchange. Visa, the payments network, and Worldpay, the transaction processor, were both caught up in the storm and later said Coinbase was not at fault.

The company had previously faced other user complaints, including from some who have said that withdrawals in various currencies, including US dollars, have been delayed.

In January it hired an ex-Twitter vice-president to bolster its customer services department, which it has said was overwhelmed by the booming demand.

Other participants in the latest funding round included Y Combinator Continuity, Wellington Management, Andreessen Horowitz and Polychain.

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