Wintermute in Talks to Raise Funds from Tencent, Other Investors

Crypto trading firm Wintermute Trading Ltd. is in talks with investors including Tencent Holdings Ltd. to raise money at a valuation of roughly $2 billion, people familiar with the matter said.

As part of the transaction, early investors and employees could sell some shares, said the people, asking not to be named discussing private deliberations. Together with the money Wintermute is raising by selling new stock, the total deal size could be $200 million to $300 million, they said.

Wintermute, one of the sector’s biggest market makers, is taking advantage of a recovery in digital assets and industry excitement about ...