One of the world’s leading cryptocurrency startups, Circle, is seeking to raise $250 million according to sources directly involved with the initiative. Circle is the operator of the Poloniex cryptocurrency exchange, currently ranked 74 in the world by volume on Coinmarketcap. The firm acquired Poloniex for $400 million and also runs an institutional trading branch called Circle Trade.

$246 Million Previously Raised

Circle was valued at a formidable $3 billion at the time of its last funding round when it raised $110 million, largely from Bitmain, the world’s leading manufacturer of bitcoin and cryptocurrency mining hardware. Circle has raised $246 million to date over six different rounds, with other investors including Goldman Sachs, IDG Capital, and Baidu of China.

The $3 billion valuation may have decreased since then, with some analysts estimating that it has since shrunk to $750 million as a result of the recent crypto-economic downturn.

A successful fundraising round at this time would make the company one of the first to attract an investment of that size since the recent decline in the markets.

Crypto Winter Hurting Companies

The so-called “crypto winter” has already seriously impacted major cryptocurrency and blockchain firms, resulting in widespread staff layoffs and downsizing even among well-established heavy hitters like ShapeShift, Steemit, and ConsenSys.

Steemit recently fired 70% its workforce, citing major losses due to the bear market resulting in an inability to pay staff wages. ShapeShift, one of the earliest and well-regarded cryptocurrency exchanges, let one-third of its staff go last month, calling crypto a “harsh mistress.” Meanwhile, Ethereum giant ConsenSys announced layoffs of 60% in December, as well as plans to axe underperforming projects.

Circle itself has approximately 300 employees in five different offices in locations such as Boston, New York, and London, and in October announced that it was acquiring SeedInvest, a crowdfunding platform.

Circle Remains Tight-Lipped

Circle CEO Jeremy Allaire stated that the company is constantly seeking alternative sources of capital, neither confirming nor denying that the company is in dire straights or that the funding round is to alleviate the negative impact of the downturn. Whether the funds are for expansion or simply to allow the firm to tread water is, as of yet, unclear. At this time it’s also unclear whether the firm will be able to raise the money at its current valuation, or whether it will receive funding during the harsh crypto winter at all.

Investors have pointed out that the decline in the value of bitcoin has resulted in other firms accepting emergency funds at lower valuations.