Blockchain.com Secures $110 Million in Series E Funding Amid Market Shifts
Crypto exchange Blockchain.com lands $110 million in Series E financing, significantly reducing its prior $14 billion valuation from March 2022.
Blockchain.com, a leading crypto exchange and wallet provider, has successfully raised $110 million in a Series E funding round. This investment has placed the firm’s valuation at less than half of its March 2022 valuation of $14 billion, according to Bloomberg.
The funding round was spearheaded by UK-based investment management firm, Kingsway Capital. Other notable participants include Baillie Gifford, Lakestar, Coinbase Ventures, and Lightspeed Venture Partners. This is not the first time Kingsway Capital has led a funding round for Blockchain.com. The investment firm also led another undisclosed funding round for the crypto exchange in the third quarter of last year.
Despite this considerable drop in valuation, the recent financial activity indicates a renewed appetite for investments in crypto firms, spurred by a continued rise in digital asset prices. The broader market enthusiasm for crypto assets is linked to multiple pending applications for spot Bitcoin exchange-traded fund products from financial firms such as BlackRock and Fidelity.
Earlier in 2022, Blockchain.com’s value surged from $5.2 billion to $14 billion following a funding round led by Lightspeed Ventures and Baillie Gifford. However, the company suffered significant losses due to the collapse of the crypto lender Three Arrows Capital, to whom the company had lent funds. The fallout led to Blockchain.com laying off 150 of its staff and closing its Argentinian office.
Despite these challenges, Blockchain.com continues to be a major player in the crypto industry. Founded in 2011, the platform boasts 37 million verified users, 82 million wallets, and over $1 trillion in total transactions. Bitcoin, Ether, and Solana, some of the major cryptocurrencies, have seen increases of 116%, 61%, and 300%, respectively, over the last year, fueling investment interest.
Following the funding round, Manny Stotz, founder and CEO of Kingsway Capital, and Nicolas Brand, a partner at Lakestar, have joined Blockchain.com’s board of investors. Blockchain.com did not immediately respond to requests for comment on the fundraising round.
