eToro has completed a secondary share sale that raised its valuation to $2.5 billion, although it has continued to cancel plans to go public.

Israel-based leading global broker eToro has reported that current and former employees and initial investors completed a major secondary deal to sell $120 million worth of stock to several existing securities investors. eToro is not involved in this transaction, will not issue new shares, and will not receive the proceeds from the sale of these shares.

"eToro has experienced significant growth over the last year and has attracted a lot of interest from global investors," the company said in a statement. 

The buyers are the company's two largest shareholders, participated in a previous round of eToro funding, then intend to increase their stake in the company. According to a Calcalist report, the valuation of this FCA-licensed broker jumped to over $2.5 billion in the secondary market due to the sale of this stock.

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In addition, eToro completed its most recent round of funding in March, raising $250 million at a $3.5 billion valuation. The funding round was led by ION Group and SoftBank's Vision Fund 2, with participation from Velvet Sea Ventures and several other existing investors.

Previously, eToro had planned to merge with a Betsy Cohen-backed blank check company, Fintech Acquisition Corporation. Once listed, the company will be worth over $10 billion. But the decline in stock and cryptocurrency prices is causing retail brokers, including eToro, to experience a drop in trading activity as investors re-evaluate their exposure. As a result, eToro still abandoned plans to go public, despite having managed to cut SPAC's valuation to $8.8 billion from the original plan to around $10.4 billion.