Tencent Eyes $300M Investment in Wintermute: Crypto Market Buzzes

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Tencent Eyes $300M Investment in Wintermute

YEREVAN (CoinChapter.com) — According to reports from Bloomberg and The Information, Chinese social media giant Tencent is among the investors interested in Wintermute, a prominent algorithmic crypto trading firm. Wintermute is reportedly in discussions to raise between $100 million to $300 million. Sources indicate that the investment round could elevate Wintermute’s valuation to approximately $2 billion.

Wintermute provides liquidity to over 50 cryptocurrency exchanges and trading platforms. The firm has facilitated about $5 trillion in cumulative trading, doubling this figure over the past two years. In January 2021, Wintermute raised $20 million in a Series B round led by Lightspeed.

Wintermute Secures $20M Series B Funding Source: Business Wire — *Wintermute Secures $20M Series B Funding. Source: Business Wire*

Which also led a $2.8 million round in July 2020.

Wintermute Secures $2.8M Series A Funding Source: Business Wire — *Wintermute Secures $2.8M Series A Funding. Source: Business Wire*

Tencent Expands Crypto Presence with Strategic Investments

Tencent’s involvement in these talks marks a significant move for the company. Tencent is best known for developing the WeChat messaging app and publishing a range of video games. As gaming revenues decline, Tencent has diversified into artificial intelligence and now appears to be expanding its footprint in the crypto sector.

Since September 2023, Tencent has collaborated with the TON Foundation and Telegram on mini apps through its Tencent Cloud subsidiary. In March, it signed a Memorandum of Understanding with the Ras Al Khaimah Digital Asset Oasis economic free zone to establish a training center and foster crypto entrepreneurship. This potential investment in Wintermute aligns with Tencent’s broader strategy of integrating into the digital assets space.

Tencent has also made significant investments in other areas of the crypto market. It has invested in non-fungible token scaling solution Immutable and was a major investor in the now-defunct Australian blockchain logistics company Everledger. Tencent’s partnership with Everledger and Russian diamond producer Alrosa in 2019 for a diamond retailing e-commerce project shows its willingness to explore diverse crypto applications.

A Key Player in Crypto Investments and Trading

Wintermute is not only a liquidity provider but also an active investor in the crypto ecosystem. This year, it has invested in several projects, including the Analog cross-chain communications tool, the Backpack crypto exchange, and Ethereum scaling solution Taiko. Additionally, Wintermute has shown interest in the Agora digital dollar and the M^0 stablecoin issuance platform.

The company is also reportedly eyeing the purchase of the dYdX derivatives trading software. Wintermute’s role in facilitating substantial trading volumes and its active investment in various crypto projects highlight its influence in the industry.

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