Abu Dhabi-based crypto trading firm Hayvn is in talks with institutional investors to anchor a Series B funding round that would value it at $400 million as it considers a possible initial public offering, its manager has said. general.
Hayvn, which raised $5 million in Series A funding in 2021, hopes to raise $30 million in the Series B round which it expects to close in about three months, CEO Christopher Flinos told Reuters.
Crypto’s entry into the mainstream has accelerated, with major banks and corporations beginning to adopt it. Industry backers hope this will reduce the price volatility of digital coins.
Series A funding typically secures cash for early development plans, followed by a Series B round to fund further expansion.
Hayvn, which offers trading, custody, asset management and payments services, has about $75 million in assets under management and expects that to grow to $500 million by the middle. of the year, said Flinos.
The company aims to pursue a $150 million IPO when Hayvn reaches a valuation of $1.5 billion, which Flinos says will be reached in 12 to 16 months.
Hayvn is considering acquisitions such as private banks, asset managers and insurers, financed by proceeds from the IPO, he said.
Several stock exchanges are being considered, including New York, London, Toronto, European stock exchanges and Abu Dhabi.
“I would love to do one in Abu Dhabi,” Flinos said. “But you have a responsibility to your shareholders to do it where you get the best liquidity and the best valuation.”
Flinos said Hayvn held talks with five Gulf sovereign wealth funds and others in Northern Europe and Asia to manage their cryptocurrency investments, as well as with some about potential investment in the company. via the series B cycle.
“We are talking with a lot of these entities,” he said, adding that he expected most Gulf sovereign wealth funds to have made significant crypto investments within four months.
“We expect to take our fair share because we are regulated in their area,” he said.
He said Asian sovereign wealth funds were already invested in crypto, while European funds were about three to four months behind “more entrepreneurial” Middle Eastern funds.
Hayvn has been in business for a year and received regulatory approval from Abu Dhabi Global Markets (ADGM) in December.
It is also allowed in the Cayman Islands and Switzerland.
Abu Dhabi’s state fund, Mubadala, told CNBC in December that it had invested in the cryptocurrency ecosystem, such as blockchain technology, given the rise in value of digital currencies.