European bitcoin exchange Safello says itâ€™s raised 11 million Swedish krona ($1.3 million) to cover the costs of a planned stock exchange listing in the first half of 2021.
The Stockholm, Sweden-based company aims to list on Nasdaqâ€™s First North Growth Market, it announced Friday.
The funding effort, made via an issuance of new shares, was led by Digital Currency Group, CoinDeskâ€™s parent company, with venture capital firms Northzone, White Star Capital, and Techstars also participating.
Frank Schuil, Safello CEO and co-founder, told CoinDesk he had considered issuing shares digitally as tokenized securities but he concluded the technology has â€œnot matured to a level we feel comfortable with.â€ As such, Safello is â€œgoing the traditional route,â€ he said.
The Nasdaq First North listing is a â€œbig thingâ€ for Safello and it is about â€œtrust-buildingâ€ with regulators, according to Schuil. The listing approval process will involve Swedish financial regulators who will closely scrutinize the company and its prospectus.
Safello says it reached profitability in mid-2019 as trading orders grew by 831% over last year.
The firm sees the current bull market as being favorable timing for the IPO announcement. â€œTiming-wise, we have always been successful. Our first investment round was at the peak of the bull market in 2013, and our last investment round was at the peak of 2017,â€ said Schuil.Â Â
â€œWe look at the long-term prospect of crypto and blockchain. While we see the price swings, we know the swings and we can anticipate the swings (for us the prices are relevant for the business) â€“ our whole philosophy is to become profitable in a bear market,â€ he said.Â Â
For the IPO, Safello has hired corporate finance specialist Corpura Fondkommission as its financial advisor, and the law firms SchjÃ¸dt and Kassai Law have been named legal advisers.
â€œWe see significant interest in the crypto segment in its entirety â€“ and in Safello as a company in particular,â€ saidÂ Carl Kindal, partner at Corpura Fondkommission, in a statement. â€œThis is evident as the issue was oversubscribed to SEK 48 million, which corresponds to a subscription rate of almost 500%.â€