Blockchain.com Closes $110M Series E Round, Marking a Significant Drop in Valuation
Summary:
Blockchain.com, a crypto exchange and wallet provider, recently completed a $110 million Series E funding round, considerably reducing its valuation from its previous $14 billion peak in 2022. The decline in valuation has not deterred renewed interest in crypto firms, driven largely by increases in digital asset prices. Blockchain.com currently has 37 million verified users and over $1 trillion in total transaction value across its platform.
Blockchain.com, a leading cryptocurrency exchange and wallet provider, recently sealed a $110 million Series E funding round. This latest investment significantly drops the company's valuation to less than half of its previous $14 billion estimate in 2022. The fundraising round was primarily spearheaded by Kingsway Capital, a UK-based venture capital firm, alongside other participants such as Baillie Gifford, Lakestar, and Coinbase Ventures, as stated in the company's blog post on November 14.
In a report by Bloomberg on the same day, insiders pointed out that Blockchain.com's new financial milestone has placed its valuation far below the $14 billion it achieved in March. Prior to this slump, the firm had witnessed unprecedented growth when it closed another funding round on March 30, 2022, tripling its valuation from $5.2 billion to $14 billion. This was barely two months before Do Kwon’s Terra ecosystem went bust, leading to a liquidity fallout that caused several renowned cryptocurrency lenders including the hedge fund Three Arrows Capital to go bankrupt.
The fundraising activities in March were led by Lightspeed Ventures, a global venture capital firm, and Baillie Gifford & Co., an investment managing institution known for its early stakes in high-growth stocks like Tesla.
Despite the recent dip in valuation, Blockchain.com's new funding has sparked interest in the potential of investing in cryptocurrency enterprises. This has been fueled by the steady increase in digital asset prices in the broader market. The widespread market interest in cryptocurrency assets is associated with numerous awaiting approvals for spot Bitcoin exchange-traded fund (ETF) products from financial institutions such as BlackRock and Fidelity. At present, Bitcoin (BTC) has seen a 116% surge over the past year, while other major cryptocurrencies like Ether (ETH) and Solana (SOL) have respectively risen by 61% and 300% over the same period.
Blockchain.com, established in 2011, boasts 37 million confirmed users, 82 million wallets, and a total transaction value exceeding $1 trillion across its platform.
Published At
11/14/2023 11:08:14 PM
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