Dragonfly Capital, a San Francisco-based venture capital firm specializing in cryptocurrency investments, has announced a strategic investment of $10 million in Bitget, a fast-growing crypto derivatives exchange. This investment follows Bitget’s acquisition of BitKeep, Asia’s largest crypto wallet with 9.5 million users, and a $30 million investment in the startup. Bitget, founded in 2018 and registered in Seychelles, serves primarily Asian, Latin American, and European customers and has eight million users before the deal.
Bitget is known for its futures trading and was ranked as a top three derivatives exchange by a Boston Consulting Group report in July 2021. According to CoinGecko, the analytics site, Bitget is currently ranked fifth among derivative exchanges in terms of open interest and trade volume, logging a 24-hour open interest of approximately $2.4 billion. Bitget intends to expand into spot trading, yield-generating products, and its launchpad initiative to assist early-stage token projects in getting off the ground. The company plans to use the $10 million capital injection from Dragonfly to fund these expansions and global initiatives to increase crypto adoption.
Gracy Chen, Managing Director of Bitget, expressed excitement about the partnership, stating that Dragonfly’s expertise and insights in the crypto industry would help the company discover more growth opportunities and contribute to the industry’s sustainable growth. Dragonfly is a well-known venture investor in the crypto sector, having raised $650 million for its third fund in April 2021.