Arthur Hayes, CEO and founder of BitMEX.

  • Peer-to-peer crypto contract trading platform BitMEX says it has notional daily trading volume of more than $1 billion on its platform.
  • CEO Arthur Hayes told BI he “absolutely” has interest from venture capitalists but he is not interested.
  • “The mining firms, the trading platforms — they don’t need VC money,” he said.

LONDON — The CEO and founder of a Hong Kong-based bitcoin platform says he has no interest in taking an venture capital investment, despite interest from funds.

Arthur Hayes, the founder of BitMEX, a peer-to-peer platform for trading cryptocurrency derivatives, told Business Insider he has “absolutely” had interest from VC funds looking to invest.

BitMEX lets people trade cryptocurrency derivative contracts such as futures with other investors. Founded in 2014, the company is registered in the Seychelles but has operations in Hong Kong and the US.

BitMEX offers leverage of up to 100x on its bitcoin futures products and Hayes says billions of dollars worth of cryptocurrency are being traded on the platform every day.

“In December of last year, we did $2 billion of notional trading per day on our platform,” said Hayes, a Wharton graduate who worked for Deutsche Bank in Hong Kong before setting up BitMEX. “It’s down a bit in January but we’re still in the $1 billion+ notional traded per day.”

BitMEX only accepts bitcoin as collateral and charges a fee of 0.05% for trades placed on its platform and Hayes confirmed that BitMEX charges fees on the notional values traded, suggesting revenues of at least $500,000 per day.

“We’re doing OK,” Hayes said when asked how much BitMEX is making. “We’re not doing as well as some of the other exchanges that charge higher fees but its definitely a profitable business.”

The huge volume, the bulk of which comes from North Asia, has understandably attracted attention from investors.

“When we need the VCs Read More Here