Reshab AgarwalSoftbank from Tokyo has entered the crypto space by investing in a trading firm, Mercado Bitcoin. They have invested $200 million into Mercado Bitcoin through their parent company 2TM Group in a Series B funding round. 2TM is currently one of the largest fintech firms in Latin America, which makes it a great investment for Softbank. They have also attained unicorn status with a total valuation of $2.1 billion.
Mercado Bitcoin’s growth
The company plans to use the recently raised funds to expand its services and improve its infrastructure. They have also increased their client base substantially over the course of the last year. And this growth rate has increased even more in 2021 when crypto adoption saw new heights. In 2021, they have gathered over 700,000 new customers and generate more trading volume than the last 7 years combined.
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This growth has impressed SoftBank, which is why they invested in the company. Mercado Bitcoin has now great control over the Brazilian market and is also working to bring regulation to the crypto markets there. All this has made the $200 million investment in the company quite a big and good decision.
Softbank has a great interest in Fintech and Blockchain
Softbank has kept a close eye on the growth of fintech and crypto adoption in Latin America. Recently, an ETF has also been approved there, which will make the investments even more accessible in Brazil. This is why Softbank has invested in many other companies like Cortex, Inter, Loggi and more. Softbank had the vision to see the importance of blockchain technology before anyone. And they partnered up with Tbcasoft and IBM in 2019 to work on a project involving the same.
Image Source: CNBC
Even companies that are backed by Softbank, which had no association with crypto, are now engaging with it. Some are entering the space directly by releasing crypto products, while some indirectly by accepting crypto payments. I personally think this is a good investment, but Softbank has made many questionable investments and has been facing a lot of losses.
What are your thoughts on Softbank getting into crypto through a $200 million investment? And do you think this is a wise decision? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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