New York: CoinTracker, which tracks taxes and consumer wallets on cryptocurrencies, said Thursday it raised $100 million in funding from a slew of institutional investors and high net worth individuals.
The investment brings the company’s valuation to $1.3 billion.
CoinTracker allows consumers to track their crypto portfolios on exchanges and wallets, helping users monitor their market value, investment performance, transactions, and taxes.
The funding round was led by venture capital firm Accel, according to a statement from CoinTracker, with investors including Initialized Capital, General Catalyst, Y Combinator Accuity and Seven Seven Six, the venture capital firm of the co- Reddit founder Alexis Ohanian, also participating. .
The five institutional investors confirmed their participation in emails to Reuters.
The funds will be used to expand the company’s staff, maintain coverage of exchanges, blockchains and other crypto sectors, as well as scale customer support and content, CoinTracker said in its statement. .
Crypto adoption has grown exponentially across multiple exchanges, wallets, and apps, with an estimated 221 million global users buying and selling the digital currency in June 2021. This has created challenges for investors in tracking their portfolio and tax compliance.
“The biggest issue crypto holders face when it comes to tax compliance is that as soon as they transact with crypto beyond a single exchange, accurately calculating taxes becomes extremely difficult,” he said. Jon Lerner, CEO and co-founder of CoinTracker, to Reuters in an email.
Historically, he said tax compliance for cryptocurrencies has been weak. By the end of 2015, Coinbase had 5.9 million customers trading $6 billion in crypto. But between 2013 and 2015, the Internal Revenue Service reportedly only received 800 to 900 tax returns with crypto transactions, Lerner added.
Understanding how to accurately file and manage taxes is where CoinTracker comes in, said Sagar Sanghvi, Partner at Accel and CoinTracker Board Member.
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