Bitcoin Exchange bitFlyer Raises $4 Million in New Funding

Bitcoin exchange bitFlyer has raised approximately 510m JPY ($4m) through third-party allotment, which entails issuing new shares to a limited number of investors.

According to a company statement, investors included VC firms Mitsubishi UFJ Capital Co – one of Japan's largest investors – Venture Labo Investment Co and Mitsui Sumitomo Insurance Venture Capital Co.

Dentsu Digital Holdings Inc

– a business management company in the digital communications market – and financial information provider Quick Corp also participated in the round.

Japan-based bitFlyer said it would use the latest funds to heighten security for its customers plus establish and maintain a solid management system.

The statement continued:

"In addition, bitFlyer will take advantage of synergies available with each investment organisation, and will continue to promote customer base expansion, strengthen revenues, and expand our global business development."

The news follows the closure of a previous 130m JPY ($1.1m) funding round in January, led by Barry Silbert's Digital Currency Group, and brings the exchange's total funding to date to approximately $6.9m.

BitFlyer was first launched after its CEO Yuzo Kano, a former derivatives and convertible bonds trader at Goldman Sachs, raised $1.6m last summer.

At the time, it was perceived that the new exchange set out to recapture the vacuum in Japan's bitcoin market market following the collapse of the exchange Mt Gox.

Money image via Shutterstock.