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Report: BlockFi preps a down round

Illustration of a stock trend line forming a sad face

Illustration: Annelise Capossela/Axios

BlockFi, a crypto lending company, is set to close on a new round of funding that will value it significantly below its last valuation, per The Block.

Why it's the BFD: Founders are finally beginning to lower their expectations to match what investors are willing to pay — even in crypto.

Context: Back in April, BlockFi hired JPMorgan to raise a new round of funding at a potentially higher valuation, though no number had been determined.

  • Since then, markets have soured on crypto assets even more while institutional demand has also waned.
  • The company was last valued around $4.5 billion, but is now reportedly closing a round that would value it at $1 billion. Bain Capital Ventures is said to be leading the new round of funding.

What they're saying: “BlockFi does not comment on market rumors,” a spokesperson said in an emailed statement.

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