PayPal, Coinbase among firms to invest in crypto tax automation startup TaxBit

Investments • January 7, 2021, 10:25AM EST
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PayPal's venture arm is among a group of new investors of TaxBit, a tax compliance automation startup.

Other investors, per a Thursday morning statement, include Coinbase Ventures and Winklevoss Capital. Winklevoss Capital previously partook in the $5 million seed round for TaxBit.

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The move represents the latest expansion of PayPal's footprint in the crypto space, following its headline-setting partnership with Paxos last year that saw the payments giant begin to integrate crypto into its service offerings. PayPal was reportedly said to be considering acquisitions in the industry, though a rumored purchase of crypto custodian BitGo ultimately fell through. 

"We want to thank our customers, partners, and investors for helping us move the cryptocurrency space forward, " said Austin Woodward, TaxBit's founder and CEO. "This investment will help us achieve our aim of being the most innovative and trustworthy provider of cryptocurrency tax technology."

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MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.

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