Blockchain.com, a prominent cryptocurrency exchange and wallet provider, has concluded a substantial $110 million Series E funding round, which notably resulted in a valuation that is now less than half of its previous 2022 valuation of $14 billion.
In a blog post dated November 14, Blockchain.com disclosed the closure of its Series E funding round, which was spearheaded by British venture capital firm Kingsway Capital. Notable participants in this round include firms like Baillie Gifford, Lakestar, and Coinbase Ventures.
According to a report from Bloomberg on November 14, sources familiar with the matter stated that the $110 million round resulted in a valuation for Blockchain.com that was significantly less than its $14 billion valuation in March 2022. The 2022 valuation skyrocketed from $5.2 billion to $14 billion following a funding round completion on March 30. This dramatic surge occurred shortly after Do Kwon's Terra ecosystem encountered difficulties, leading to liquidity disruptions that affected entities like hedge fund Three Arrows Capital (3AC) and several prominent cryptocurrency lenders.
Blockchain.com's prior funding round in March 2022 was primarily led by global venture capital firms Lightspeed Ventures and Baillie Gifford, with the latter known for its early investments in growth stocks like Tesla. Although the new investment led to a diminished valuation for the company, it signifies a resurgence in investment interest from cryptocurrency entities, partly driven by the ongoing rise in digital asset values.
The fervor for crypto assets has been fueled by various pending applications for spot Bitcoin exchange-traded fund (ETF) products from major financial firms such as BlackRock and Fidelity. Bitcoin has surged by 116% in the past year, while Ethereum and Solana have seen gains of 61% and 300%, respectively, over the same period.
Established in 2011, Blockchain.com boasts 37 million verified users, 82 million wallets, and a cumulative transaction value exceeding $1 trillion across its platform.
