BitOoda, a U.S.-based cryptocurrency agency brokerage firm, has raised $7 million in seed money.
A slew of energy and commodity traders participated in BitOoda’s funding round, including Gary Ross, former head of global oil analytics at S&P Global Platts, as well as founder of PIRA Energy; Calvin Schlenker, former head of North American natural gas trading at British Petroleum; and Roy Salame, former head of commodities sales and structuring at JPMorgan.
Founded in 2017, BitOoda operates as a crypto agency broker, serving institutional clients. An agency broker has a responsibility to find the best execution for its clients. A broker-dealer, on the other hand, does not have a responsibility to the client placing the trade.
BitOoda also offers block trading and risk management solutions, including bitcoin difficulty swap and hashpower contract. The swap product is a hedging instrument for bitcoin miners who want to mitigate the risk of an increase in difficulty, which could reduce their expected bitcoin production. The hashpower contract, on the other hand, allows users to get exposure in a specific coin over a known period without having to purchase mining rigs.
With the fresh capital in place, BitOoda plans to expand its solutions in the U.S. as well as Asia and Europe “to meet the soaring demand,” said the firm’s founder and CEO Tim Kelly.