In a significant development within the cryptocurrency sector, Gaorong Ventures, a prominent Chinese venture capital firm, has invested $30 million into HashKey Group, operator of Hong Kong’s largest licensed crypto exchange. This investment comes at a pre-money valuation exceeding $1 billion, as detailed in a recent Bloomberg report. A spokesperson for HashKey indicated that the post-money valuation approximates $1.5 billion.
This backing reflects a growing interest in the cryptocurrency market, particularly from Chinese investors, despite the country’s historical bans on cryptocurrencies. The latest crackdown occurred in 2021, leading to the exodus of various crypto platforms from China. Nonetheless, domestic investors are increasingly placing their confidence in the sector. For instance, Tencent Holdings recently made headlines with its investment in Wintermute, a prominent crypto market maker.
HashKey Group, founded in 2018, has quickly established itself as a key player in the region’s cryptocurrency landscape. Earlier this year, the firm successfully raised $100 million in a Series A financing round, achieving a post-money valuation of $1.2 billion. HashKey is recognized for operating the first two licensed cryptocurrency exchanges in Hong Kong, while also engaging in venture funding and asset management strategies.
As the cryptocurrency landscape continues to evolve, the investment by Gaorong Ventures highlights a potential shift in strategy among Chinese investors, signaling a bullish outlook on the future of crypto despite the regulatory challenges that persist. This trend may foreshadow further investment influxes into the sector, potentially reshaping the dynamics of the crypto economy in the region.
