Blockchain.com Raises $110M Funding Amid Industry Shifts

Cryptocurrency platform Blockchain.com recently wrapped up a funding round, raising $110 million, with Kingsway Capital taking the lead. This surge in investment mirrors the growing enthusiasm for crypto ventures amidst this year's price upswing.

The Series E round, spearheaded by UK-based Kingsway Capital, saw contributions from Baillie Gifford, Lakestar, Lightspeed Venture Partners, Coinbase Ventures, and others. Alongside the funding, two new board members join: Manny Stotz, Kingsway's CEO, a seasoned crypto investor, and Nicolas Brand from Lakestar.

However, despite this strategic funding, the company's valuation stands at less than half of its prior value in spring 2022. Previously, Blockchain.com secured undisclosed funds during its Series D at a staggering $14 billion valuation. This steep increase followed the $300 million Series C round in March 2020, where its value surged to $5.2 billion.

This recent financing elevates Blockchain.com's total funds raised since its 2011 inception to around $600 million. Notable investors include Lightspeed Venture Partners and Baillie Gifford, a Tesla supporter involved in Blockchain.com's 2021 Series C, contributing $100 million.

While specific post-Series E valuation details are unconfirmed, earlier reports hinted at Blockchain.com aiming for a $3 billion to $4 billion valuation.

The conclusion of this round arrives after a tumultuous period for the company. Blockchain.com faced a 28% workforce reduction in January and disclosed a $270 million exposure to the insolvent hedge fund Three Arrows Capital (3AC) in July, following a failed margin call.

The fallout from the hedge fund's insolvency has reverberated across the crypto industry, with significant losses reported by brokers and lenders, leading to some filing for bankruptcy.

These developments emerged shortly after Blockchain.com expressed intentions to go public this year. While the plans remain tentative and subject to change, the company's IPO ambitions might be deferred to the following year.

Macrina Kgil, Blockchain.com's CFO, revealed to Forbes last year their contemplation of going public but emphasized the absence of immediate action plans.

Blockchain.com, steered by CEO Peter Smith, boasts 73 million crypto wallets and over 31 million verified users across 200+ countries. Additionally, it claims a substantial 28% market share in bitcoin transactions.