With the rising expectations of investors, the crypto sector has started to attract attention. There is a revival in the market with Bitcoin surpassing $40,000 and creating a ripple effect in various digital currencies. Amidst this revival, the C1 Fund, equipped with a $500 million fund, is approaching secondary stocks with strategic discounts of up to 80%.
The C1 Fund, established by former Coinbase attorneys and investors, aims to buy secondary shares from investors of leading cryptocurrency organizations. The fund focuses on crypto companies that are in Series C or later stages with a valuation of at least $300 million in the last financing round, aiming to write checks ranging from $20 to $50 million.
C1 Fund, which turns market conditions such as hyperinflation and rising interest rates to its advantage, believes in reaching attractive valuations in the secondary market as the digital asset market matures. They commit to buying stocks at significant discounts by leveraging the current market dynamics.
It is claimed that Animoca Brands, based in Hong Kong, came onto the radar of the C1 Fund after trading on the ASX, and the fund offered to buy the company’s shares at a significant discount compared to its last valuation. In addition, the US-based Chainalysis company, which was valued at $8.4 billion in 2022, is also a target for the C1 Fund to make significant discounts on its secondary preferred shares.
Investors are anticipating a crypto renaissance with the possibility of US regulators approving a Bitcoin ETF in January. This approval could pave the way for major Wall Street players to market their funds to a broader investor base. Such a flow could provide an opportunity for further growth in the crypto space and especially lead to an increase in the value of cryptocurrencies.