BlockFi readies for a new round of funding
In a move that follows BlockFi's settlement with the SEC, the fintech has hired JPMorgan to raise a new funding round, sources with knowledge of the matter tell Axios.
Flashback: In February, the company agreed to pay a $100 million fine to the SEC over issues around its high-yield product.
Why it matters: The agreement, while hefty, cleared the regulatory uncertainty around its business and allowed the company to launch another funding round at possibly a higher valuation, the sources say.
Of note: Last summer, BlockFi sought to raise at a $4.75 billion valuation, with Third Point and Hedosophia at the helm.
- Third Point, however, reportedly backed out, per Newcomer, as BlockFi continued to face questions from state regulators and the SEC over the high-yield crypto product.
Details: The precise figures around this next round are still unclear, as the process is just getting started.
- BlockFi did raise funding that valued the company at about $4.5 billion last year.
- BlockFi and JPMorgan declined to comment. Third Point and Hedosophia did not respond to requests for comment.
Context: BlockFi's funding round comes as crypto companies appear to be bucking the broader tech slowdown — for now.
- Bloomberg reported on Monday that crypto wallet company Blockchain.com is considering an IPO as soon as this year, having hit a valuation of $14 billion in March.