Founded in 2017, Blockpit developed Cryptotax software to offer the automated calculation of taxable profits from trading crypto assets such as Bitcoin and Ethereum, as well as from other activities of crypto traders and investors such as income from staking, DeFi, lending, mining, and margin trading. The data is imported in real time from common crypto exchanges and wallets, standardized, and then consolidated in a country-specific report which displays taxable profits and other important data.

Cryptotax was most recently deployed in Spain and France, making the audited tax reports available across six countries: Austria, Germany, France, Switzerland, Spain, the US.

According to Blockpit, demand for the software has increased heavily due to the upcoming introduction of the EU DAC-8 directive coupled with the strong upswing of crypto assets in the past months. DAC-8 is expected to facilitate data exchange between trading platforms and financial authorities across the EU in the future.

MiddleGame Ventures (MGV) – an expert fintech fund currently investing in the capital markets, asset management and open finance space – led the Series A investment round, with four new and one existing investor (EXF Alpha S.C.S) also participating in the round. The MGV partners previously invested in early-stage startups such as Ripple, Tandem Bank, Simplesurance, CoverHound, DriveWealth and CompareAsia (now Hyphen Group) over the past decade.

“In addition to the monetary boost, the expertise as well as international network of the investors in various areas will result in new market access and numerous opportunities for commercial partnerships. This will massively accelerate the further development of our products as well as our expansion to new countries,” – Florian Wimmer, CEO and co-founder of Blockpit, welcomes the broad network of new shareholder.

“We are delighted to partner with Blockpit. We firmly believe in the future of digital assets. As these digital assets are more and more accepted by investors of all stripes and colors, retail and corporate or institutional, taxation and accounting considerations will become increasingly more important to master. Blockpit is at the nexus of these trends and has a bright future ahead of itself,” – comments Pascal Bouvier, Managing Partner of MiddleGame Ventures.

Another high-profile investment fund that also participated was Fabric Ventures which, among others, has stakes in the recently listed crypto trading platform Coinbase, the multichain protocol Polkadot (DOT), conceived by Ethereum founder Gavin Wood, and the blockchain NFT games Sorare and Axie Infinity. The new shareholders also include Force over Mass Capital, Tioga Capital (Casa), and Avaloq Ventures, who have strong backgrounds in the blockchain, FinTech and traditional core banking sectors and will support Blockpit more than just financially.