Blockchain.com, a cryptocurrency exchange and wallet provider, recently concluded a $110 million Series E financing round, significantly lowering its valuation for 2022 to less than half of the previous $14 billion. The funding closed on November 14, was spearheaded by the UK-based venture capital firm Kingsway Capital, with contributions from notable entities like Baillie Gifford, Lakestar, and Coinbase Ventures.
According to a November 14 report from Bloomberg, sources familiar with the matter revealed that the $110 million injection has resulted in a considerable decrease in Blockchain.com’s valuation compared to its March 2022 valuation of $14 billion. The earlier valuation surge occurred shortly before Do Kwon’s Terra ecosystem collapsed, causing a liquidity cascade that impacted hedge fund Three Arrows Capital (3AC) and several prominent crypto lenders.
Blockchain.com’s March 2022 funding round, which elevated its valuation from $5.2 billion to $14 billion, was led by Lightspeed Ventures and Baillie Gifford, a firm well-known for its early engagement in growth stocks like Tesla.
Although the recent investment led to a valuation decline, it indicates a renewed interest in investing in crypto firms, driven by the sustained rise in digital asset prices. The overall enthusiasm in the market for crypto assets is linked to various pending applications for spot Bitcoin exchange-traded fund products from financial giants such as BlackRock and Fidelity.
In the last year, Bitcoin has experienced a 116% increase, while other major cryptocurrencies like Ether (ETH) and Solana (SOL) have seen rises of 61% and 300%, respectively.
Established in 2011, Blockchain.com boasts 37 million verified users, 82 million wallets, and a total transaction value exceeding $1 trillion across its platform.
