Chinese VC Drops $30M on Hong Kong Crypto Giant – What’s the Catch?

In a move that’s either brilliantly bold or hilariously optimistic, Beijing-based Gaorong Ventures has reportedly thrown $30 million at HashKey Group, the operator of Hong Kong’s top crypto exchange. This little transaction values HashKey at a cool $1.5 billion, which is roughly the GDP of a small island nation or the cost of a single avocado toast in San Francisco. 🥑💸

Yes, you read that right. A Chinese venture capital firm, known for backing internet darlings like Meituan and PDD Holdings, has decided to dip its toes into the wild, wild world of crypto. According to Bloomberg (and some “people familiar with the matter,” who probably have a lot of explaining to do at family dinners), this is a rare move for a Chinese firm. Rare, as in, “Why would you do that?” rare. 🤔

Gaorong’s investment comes at a pre-money valuation of over $1 billion, a number that hasn’t budged much since HashKey became a unicorn in 2024 after raising $100 million. A HashKey spokesperson confirmed that the $30 million injection bumps the post-money valuation to nearly $1.5 billion. That’s a lot of zeroes for a company that deals in digital Monopoly money. 🦄💰

This funding news comes hot on the heels of HashKey Capital, the investment arm of HashKey Group, getting the green light from Hong Kong’s Securities and Futures Commission to manage discretionary accounts for cryptocurrencies. Translation: they can now play with spot crypto, derivatives, and over-the-counter trades for the ultra-wealthy. Because, of course, the rich need more ways to get richer. 🤑📈

Founded in 2018, HashKey Group is a crypto jack-of-all-trades, offering everything from exchange trading to custody, brokerage, venture capital, asset management, and even node validation. They’re licensed by financial regulators in the UK, Hong Kong, Singapore, Japan, and Dubai, which is impressive until you realize that’s a lot of paperwork. 📑🌍

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2025-02-14 13:50