Blockchain.com Eyes Funding at 70% Lower Valuation: Report

The explosive growth of Blockchain.com has reportedly been tempered by the bear market, with far lower valuations on the horizon

article-image

Blockchain.com CEO Peter Smith at Money20/20 in Amsterdam (2022)

share

key takeaways

  • The firm was last valued at $14 billion in March, nearly triple what it was worth just one year earlier
  • Reports indicate Blockchain.com is now seeking to raise at as little as $3 billion

Crypto exchange Blockchain.com is reportedly on the hunt for funding, but it may have to cop a significant down round as a result of the bear market.

Blockchain.com, which doubles as a financial services firm across the crypto space, is in talks for a round that could take its valuation to between $3 billion and $4 billion, Bloomberg reported on Thursday.

That would be 70% lower than its $14 billion valuation in March, when the firm closed a Series D round led by Lightspeed Capital Ventures for an undisclosed amount. Founded in 2011, the firm has raised a total of $490 million over seven fundraising rounds, Crunchbase data shows.

The move comes after Blockchain.com reportedly raised a strategic funding round, again of an undisclosed amount, led by UK-based investment firm Kingsway Capital in the third quarter. Terms of the latest deal are still developing and not final yet.

Blockchain.com was one of several major players in the space to lay off employees during tough market conditions, slashing 25% of its workforce in July. Around six weeks earlier, Blockchain.com CEO Peter Smith told Blockworks the crypto ecosystem was entering the “despair” phase of the bear market.

The firm was also reportedly exposed to embattled crypto hedge fund Three Arrows Capital, which owes it $270 million as of its July insolvency.

All this while venture capital (VC) funding for the crypto sector has slowed dramatically, as the prices for bitcoin and other cryptoassets plunged amid a broader market downturn throughout the year.

VC firms around the world invested just $4.44 billion in crypto startups in the third quarter, a 37% year-on-year drop, Bloomberg said, citing PitchBook data.

The flagship crypto fund for Andreessen Horowitz, one of the most prominent VCs in the space, lost around 40% of its value in the first six months of this year. For scale, the total digital asset market shed 60% across the same period.

Blockchain.com didn’t return Blockworks’ request for comment by press time.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

hivemapper.jpeg

Research

We believe crypto market participants overlook Hivemapper’s fundamental potential due to a poor understanding of both the niche map data market and Hivemapper’s positioning relative to incumbents. Hivemapper’s token model catalyzes both a cost and product advantage via unmatched map freshness and near real-time accuracy, which is its wedge into a market characterized by stale data and high data collection costs. Its current and potential future product suite may represent one of the strongest possibilities for PMF in crypto today.

article-image

The Department of Justice and Commodity Futures Trading Commission announced back-to-back lawsuits against KuCoin Tuesday

article-image

Judge Failla found that Coinbase didn’t operate as an unregistered broker in offering its wallet service

article-image

A fund by Laser Digital offers investors exposure to the Polygon network, while a new 21Shares ETP focuses on staking rewards from Toncoin

article-image

Sponsored

The TRON network’s integration into Dune brings a wealth of data and insights to the fingertips of users

article-image

A BTC futures fund offered by Hashdex and Tidal Investments has gotten regulatory clearance to hold bitcoin directly

article-image

At launch, Chain Signatures will be compatible with Bitcoin, Ethereum and Cosmos network chains, as well as DogeCoin and XRP Ledger