Hidden Road Faces Potential Takeover Amid Growing Interest
Hidden Road, a prominent prime broker specializing in both cryptocurrency and traditional financial assets, is currently navigating an inbound takeover proposal, as reported by two sources familiar with the situation. The discussions are taking place with a crypto-centric company that is interested in acquiring Hidden Road. However, it remains uncertain whether a definitive agreement will be reached.
In response to inquiries, Hidden Road has opted not to comment on the ongoing negotiations. Over the past year, the company has successfully secured approximately $50 million in funding, attracting investments from notable firms, including Dragonfly Capital, a well-known venture capital firm in the crypto space.
One of Hidden Road’s investors, a firm deeply rooted in the cryptocurrency sector, has reportedly expressed interest in purchasing the company, adding another layer to the evolving narrative.
Prime brokers like Hidden Road play a crucial role in the financial ecosystem, offering essential services such as trading, financing, and custody to large institutional clients. This makes them integral to the smooth operation of financial markets.
In July 2022, Hidden Road raised $50 million in a Series A funding round, which was spearheaded by Castle Island Ventures. This round also saw participation from various esteemed investors, including Citadel Securities, FTX Ventures, Uncorrelated Ventures, Greycroft, XBTO Humla Ventures, Wintermute, SLN Capital, Profluent Trading, Coinbase Ventures, and Corner Capital.
Furthermore, recent reports from Bloomberg indicated that Hidden Road is contemplating several strategic options, which may include a potential sale or an additional capital raise. These moves could potentially elevate the company’s valuation to over $1 billion.
