Blockchain.com, a prominent cryptocurrency exchange and wallet provider, recently completed a significant fundraising round. The company secured $110 million in a Series E funding round, as reported by Bloomberg. However, this fundraising round marks a notable decrease in the company’s valuation, placing it at less than half of its previous $14 billion valuation.
The funding round was led by Kingsway Capital, a U.K.-based investment firm, and saw participation from several other notable investors, including Lakestar, Lightspeed Venture Partners, and Coinbase Ventures. Despite attempts to get comments from Kingsway Capital and Blockchain.com, neither organization responded to CoinDesk’s request for comment before the report was published.
Earlier in the year, Blockchain.com faced some operational challenges, leading to a significant reduction in its workforce. In January, the company laid off 28% of its employees, a decision likely influenced by the broader market conditions affecting the cryptocurrency sector.
In 2022, Bloomberg had reported that Blockchain.com was seeking to raise funds at a valuation between $3 billion and $4 billion. However, the exact valuation for the Series E funding round was not confirmed.
The cryptocurrency market, including Bitcoin, has shown signs of recovery since these developments. For much of October 2022, Bitcoin’s value stayed below $20,000. However, recent data from CoinDesk Indices indicates that Bitcoin has seen a notable increase in value, trading above $35,000. This recovery in asset prices might positively impact companies like Blockchain.com, potentially influencing their future market strategies and valuations.
