It is feasible that the company Taxbit will receive additional funding, bringing its market capitalization to $1 billion or higher.
It is alleged that TaxBit, a bitcoin tax software provider based in the United States, is searching for further capital at a valuation of $1 billion or more, which would elevate the company to the status of unicorn business.
According to Bloomberg, persons with knowledge of the situation have stated that TaxBit is in talks to raise financing, but that the conditions have not been finalised yet. TaxBit did not respond to a request for comment on the reports.
TaxBit is a startup established in Salt Lake City, Utah, that was founded in 2018 and specialises in crypto-related tax processes for both individuals and businesses. The system, which was developed by a consortium of CPAs, tax attorneys, and software developers, allows users to track the tax implications of their trades on cryptocurrency exchanges.
TaxBit secured $100 million in Series A financing earlier this year to fund the company’s growth into the European market. The investment round was led by Paradigm and Tiger Capital, with other participants including PayPal’s venture arm, Coinbase, Winklevoss Capital, hedge fund billionaire Bill Ackman, Qualtrics’ Ryan Smith and Anthony Pompliano, and other angel investors.
TaxBit stated in the same report that the Internal Revenue Service has picked the company to provide crypto-related data analysis and tax calculation support for taxpayers following the company’s Series A funding.
Woodward hailed the IRS decision as a watershed moment for the cryptocurrency industry, noting that it demonstrates that regulators are embracing the asset class, “but doing so in a way that ensures a straightforward approach to conform with existing regulations.”
“The United States Internal Revenue Service classifies crypto as property, meaning you can trigger taxes every time you use crypto to buy something,” explains Cointelegraph contributor and tax lawyer Robert W. Wood.