In highly volatile crypto markets, companies often need significant liquidity at their disposal to ensure smooth user transactions and maintain market stability. Particularly during influencer or politician-backed meme coins launch, the demand onslaught for transactions reaches at its peak. Moonpay too faced this instance during January this year when Donald Trump launched his Memecoins $TRUMP.
And, now in a report shared with CoinGape, MoonPay has revealed that it secured a $200 million revolving credit line from Galaxy on Thursday – implying its preparation for foreseen high liquidity demands.
Amid renewed bullish momentum in the crypto markets with ETH reaching $2000, the deal with Galaxy Digital, will provide MoonPay with enhanced liquidity during events of higher volumes and higher transactions demands.
Notably, in a X post, Keith A. Grossman, President of MoonPay revealed that “Since the U.S. presidential election last November, MoonPay has seen “incredible demand” for crypto.”
“If you compare the four months prior to the election to the four months following the election, our average daily volumes have nearly doubled (+98%),” he said. With its first ever revolving credit line, it can now operate 24/7/365 within the framework of the traditional banking system that currently runs 9 – 5, Monday – Friday.
MoonPay is proud to announce a new $200M revolving credit line from @GalaxyHQ to help fuel onboarding around the world!
As @ivanhodl says, “this revolving credit line from Galaxy provides us with the financial flexibility to meet the increased demand and continue delivering… pic.twitter.com/SUl0JTbiiZ
— MoonPay (@moonpay) March 20, 2025
Need for a Credit Line
A revolving credit facility actually differs from traditional loans by allowing a company to borrow, repay, and borrow again within a predetermined limit. And this credit line from Galaxy will provide options to Moonpay to approach it in times of higher liquidity needed to scale operations without the constraints of fixed repayment structures.
By securing $200 million, MoonPay is positioning itself to handle increased transaction volumes, roll out new features, and enhance its compliance infrastructure amid evolving global regulations. The funds will also help mitigate volatility risks in the fast-moving crypto industry, ensuring the company remains resilient against market fluctuations.
Notably, the revolving credit line allows the companies to access capital when needed, improving its ability to manage cash flow and respond to market dynamics more effectively. In this case, , moonpay would be able to secure funds from Galaxy instead of using its own balance sheet.
Additionally, it told BrandTalk that it is securing the credit line for future events as it has ended 2024 cash-flow positive and profitable, achieving 112% YoY net revenue growth.
Expanding Amidst a Crypto Resurgence
Notably, the credit line comes at a time when the cryptocurrency market is experiencing a resurgence, driven by institutional adoption, favorable regulatory developments, and a growing appetite for digital assets among retail investors.
Bitcoin recently crossed the $80,000 mark, and Ethereum is seeing strong inflows following the approval of spot ETFs in major markets.
Ethereum (ETH) recently also surpassed the $2,000 mark, signaling renewed bullish momentum in the cryptocurrency market.
Robbie Mitchnick, BlackRock’s Global Head of Digital Assets, has also suggested that a potential recession could drive up Bitcoin’s value, contributing to a surge in meme coins by 67.68% over the past 24 hours. Positive sentiment is further bolstered by legal developments. For instance, XRP’s price has jumped over 8% after Ripple’s CEO announced that the SEC had dropped its case against the company.
Thus, MoonPay’s latest funding move aligns with its aggressive push in the bullish market helping it to expand its ecosystem, which includes partnerships with major fintech firms, NFT platforms, and blockchain projects. The company has been enhancing its services to cater to both emerging and established markets, reinforcing its commitment to financial inclusion through crypto accessibility.
Crypto Companies Racing to Secure Capital?
MoonPay isn’t the only company reinforcing its financial position. Several other crypto firms have recently secured liquidity to meet market demands:
CoreWeave obtained a $650 million credit facility to expand its cloud computing services for AI and crypto mining.
Cipher Mining extended its Bitcoin-backed loan facility with Coinbase to $35 million.
Coinbase reintroduced Bitcoin-backed lending services, allowing users to borrow against their BTC holdings.
These moves highlight a broader industry trend: crypto firms are shoring up liquidity to prepare for higher trading activity and potential regulatory changes.
Thus, the $200 million credit line not only fortifies MoonPay’s financial position but also sends a strong signal about the growing confidence in crypto-native financial services. As adoption rises and the market expands, MoonPay’s latest funding round positions it to lead the next phase of crypto payments evolution.
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