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Cryptocurrency Tax Firm CoinTracker Valued at $1.3 Billion After Raising $100 Million


Cryptocurrency Tax Firm CoinTracker Valued at $1.3 Billion After Raising $100 Million

CoinTracker allows consumers to track their crypto portfolios across exchanges and wallets.

New York: CoinTracker, a consumer crypto tax and portfolio tracker, said on Thursday that it has raised $100 million in funding from a range of institutional investors and individuals. high net worth.

This investment gives the company a valuation of $1.3 billion.

CoinTracker allows consumers to track their crypto portfolios across exchanges and wallets, helping users track 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 such as Initialized Capital, General Catalyst, Y Combinator Accuity and Seven Seven Six, the co-founder’s venture firm. Reddit Alexis Ohanian, also joined. .

All five institutional investors confirmed their participation in emails sent to Reuters.

CoinTracker said in its statement, the funds will be used to expand the company’s personnel, maintain the reach of exchanges, blockchain and other cryptocurrency sectors, as well as open up scale customer support and content.

Cryptocurrency adoption has grown exponentially across multiple exchanges, wallets, and applications, with an estimated 221 million global users buying and selling digital currency as of June 2021. created challenges for investors in keeping track of their investment portfolios and tax compliance.

Jon Lerner, CEO and co-founder of CoinTracker, told Reuters in an email: “The biggest problem crypto owners face with tax compliance is right after they transact with cryptocurrencies. Outside of a single exchange, it becomes extremely difficult to calculate taxes accurately.

Historically, he said crypto tax compliance has been very low. At the end of 2015, Coinbase had 5.9 million customers trading $6 billion in cryptocurrencies. But between 2013 and 2015, the Internal Revenue Service reportedly received only 800-900 tax returns with crypto transactions, Lerner added.

Figuring out how to report and manage taxes exactly is where CoinTracker comes in, said Sagar Sanghvi, partner at Accel and CoinTracker board member.

(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)



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