Blockchain.com, a leading crypto exchange and wallet provider, has successfully raised $110 million in its Series E financing round. As per the announcement, this strategic investment marks a significant shift, placing the company at a valuation of less than half of its previous impressive $14 billion valuation recorded in March 2022.
The Series E financing round was spearheaded by the UK-based venture capital firm Kingsway Capital, showcasing their confidence in Blockchain.com’s potential and future growth. Notably, a consortium of renowned investors, Baillie Gifford, Lightspeed Venture Partners, and Coinbase Ventures, amongst many others, joined this funding initiative, reinforcing the company’s position in the market.
Blockchain.com to Enhance its Services with New Funds
Meanwhile, this substantial capital injection will undoubtedly empower Blockchain.com to enhance its services, advance technological capabilities, and explore new avenues for innovation. However, the company’s ability to secure such a noteworthy investment amidst market dynamics demonstrates its continued relevance and potential for crypto-related enterprises.
As the Series E financing round unfolded, it became evident that the investor community recognizes Blockchain.com as a pivotal player in the evolving landscape of digital assets. Also, the backing from prominent investors not only provides financial support but also serves as a vote of confidence in the strategic vision and leadership of Blockchain.com.
While the current valuation reflects a calibration from the previous peak in March 2022, the substantial funds raised indicate a strong foundation for growth and resilience.
Blockchain.com Loses Funds Due to 3AC Liquidation
Recall that last year, the distressed crypto hedge fund, Three Arrow Capital (3AC) slipped into liquidation as a result of poor risk management of assets and the plummeting price of crypto. With the current bankrupt state of 3AC, Blockchain.com reckoned that its $270 million loan given to 3AC would be recorded as a loss.
Meanwhile, to allay the fears of its customers, Peter Smith, the CEO of Blockchain.com announced that the company is very liquid and solvent. None of its customers is affected by the loss as the company will comfortably take care of it.
Resilience in the Crypto Space
The successful $110 million Series E fundraising for Blockchain.com is indeed notable, particularly considering the current climate of the crypto market.
While the failure of the exchanges, particularly FTX, may have affected funding within the crypto market, Blockchain.com Series E fundraising showcases the ongoing support and interest in innovative blockchain projects.
Also, in June, Blockchain firm Gensyn announced the completion of its $43 million Series A fundraising round.