According to the company, it plans to use the funds to expand its product and service lines as well as explore strategic acquisitions.
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iTrustCapital, a provider of 401(k), and individual retirement accounts in cryptocurrency, announced that it raised $125m in growth equity investments. This made its valuation to $1.3 billion.
iTrustCapital announced Wednesday that it had closed a $125million Series A equity investment. The investment was led by Left Lane Capital, a New York-based VC firm. The company stated that it would use the funds to expand its product and service lines, as well as to explore strategic acquisitions.
Matthew Miller, a Left Lane Capital board member, stated that “we are equally excited about partnering with iTrustCapital in support of their mission to provide cryptocurrency and other alternative investments products through self-directed IRAs.” “iTrustCapital provides long-term, tax-advantaged exposure for cryptocurrency as an asset class to clients.”
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 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 U.S. have attempted to attract investors by offering tax-free options for holding or mining crypto. Under current U.S. 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.
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.
