Several parties have addressed the insider details surrounding the recent equity transaction of cryptocurrency derivatives exchange Deribit. TechCrunch founder Michael Arrington revealed through a series of tweets that Deribit sought funding late last year to provide liquidity for founders and early investors at a $280 million valuation.
Singapore-based financial advisory firm Spartan Group introduced Deribit to hedge funds Three Arrows Capital and QCP Capital, which acquired 10% of Deribit’s warrants. The new shareholders later attempted to resell the equity at a $700 million valuation, but Spartan intervened due to reputational concerns. Ultimately, Three Arrows and QCP sold their stakes to a third party at a reduced $350 million valuation, leaving the new buyer discontented over the inflated premium.
Key Responses:
- Spartan Group: Confirmed advisory role in Deribit’s strategic funding, expressing pride in their collaboration and continued support.
- Su Zhu (Three Arrows Capital): Stated all involved parties were satisfied, though some "missed opportunities" led to discontent.
FAQ Section
Q1: What was Deribit’s initial valuation during the funding round?
A1: Deribit was valued at $280 million when seeking liquidity for founders and early investors.
Q2: Why did Spartan Group block the $700 million resale attempt?
A2: Spartan prioritized reputational integrity, preventing a valuation they deemed unsustainable.
Q3: How did the transaction conclude?
A3: The equity was sold to a third party at a $350 million valuation, disappointing the new buyer.
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