A Bay Street sign in Toronto’s financial district.© Mark Blinch / Reuters
Polychain Capital, the crypto hedge fund backed by venture firms Sequoia Capital and Andreessen Horowitz, has decided not to go public in Canada after holdings talks with bankers about an initial public offering.
The company has held discussions with bankers in recent weeks about potentially raising about $400-million in a share sale and listing on the Toronto Stock Exchange, people familiar with the plans said earlier. Olaf Carlson-Wee, chief executive officer of San Francisco-based Polychain, confirmed the talks Monday but said the firm has since decided not to proceed with a Canadian listing.
Polychain, which invests in blockchain assets, was started in 2016 by Carlson-Wee, the first employee of Bitcoin exchange Coinbase Inc. As of last September, before Bitcoin's year-end surge, it said it had about $250-million of funds under management.
Hedge funds investing in cryptocurrencies trounced their global peers last year. Nine such funds tracked by Eurekahedge Pte soared 1,167 per cent in 2017, compared to the 8-per-cent returns of hedge funds globally.