Ledger Seeks Additional $100 million in Funding
The French manufacturer of hardware wallets for the Ledger cryptocurrency raised a giant financing of $ 380 million at a valuation of $ 1.5 billion in June, Bloomberg reports.
Investors are increasingly choosing cold storage for their cryptocurrencies, as the industry has been worried about liquidity problems lately.
In June, Ledger raised $380 million in a funding round led by 10T Holdings. Now, according to reports, the company is looking for an additional $100 million to continue its rapid expansion. According to Bloomberg sources, the hardware wallet maker's business is booming as investors seek cold storage for their cryptocurrency.
Ledger hardware wallets are a type of offline storage that is not connected to the Internet, which makes them more secure from hacking than online wallets. This allows users to manage their own cryptocurrency without worrying about their provider's liquidity.
The company's products have been popular in recent years as investors seek to protect their digital assets from hacks and liquidity problems that the cryptocurrency industry is currently suffering from. According to a Bloomberg source, Ledger's business is expanding at a time when lenders and exchanges are experiencing liquidity problems.
Cryptocurrency companies in distress often stop withdrawals by customers to avoid losing liquidity due to massive withdrawals by customers, known as "bank run." The most recent example is the Singapore crypto exchange Zipmex. Crypto-lenders, including Vauld and Celsius, have also recently used this technique, and the latter filed for bankruptcy shortly after. Such concerns have stimulated demand for hardware wallets as a way to store digital assets offline and away from potential liquidity problems.
Although Ledger is said to be seeking additional funding, the company has not commented on this information. The hardware wallet provider is among the most generously funded companies in the cryptocurrency industry, and its products are among the most popular on the market. The wallet provider has also expanded to crypto debit cards. The Crypto Life (CL) card was launched on the Visa network in December last year and instantly converts cryptocurrency into fiat from a secure wallet when paying at retail outlets.
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