iTrustCapital, the cryptocurrency individual retirement account, and 401(k) provider, has raised $125 million in a growth equity investment, making its valuation reach $1.3 billion.
It has been reported that iTrustCapital said it had completed a $125 million Series A growth equity investment led by New York-based VC firm Left Lane Capital. The company said it planned to use the funds for expanding its existing product and service line in addition to exploring strategic acquisitions.
Matthew Miller, the board member of Left Lane Capital, said:
"We are equally excited to partner with iTrustCapital to help support their mission to provide access to cryptocurrency and other alternative investment products through self-directed IRAs. iTrustCapital serves clients that seek long-term, tax-advantaged exposure to cryptocurrency as an asset class."
However, providing access to 25 cryptocurrencies including Bitcoin (BTC), Ether (ETH), and Cardano (ADA) in addition to physical gold and silver, iTrustCapital allows United States-based investors to incorporate crypto investments into their retirement portfolios.
The report said that the company reported it had reached more than $4.5 billion in total transaction volume, with its client base including many working professionals from 45 to 65 years old. Many investment platforms based in the US have attempted to attract investors by offering tax-free options for holding or mining crypto.
Likewise, under current US tax law, income is often the only taxable source of funds for many who file returns, with many able to use questionable but legal methods to avoid paying the government.
Thus, in June 2021, ProPublica reported PayPal co-founder Peter Thiel had used a Roth IRA, an account generally not taxed, to invest $2,000 more than 20 years ago and turn it into a $5 billion fund. Offering “tax-advantaged” access to crypto through IRAs, iTrustCapital seems to be aiming for a similar way to reduce potential tax payments using crypto investments.
Source: Cointelegraph
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