Axios Pro Exclusive Content seeks funding in potential down round

Oct 27, 2022
Illustration of a fist crushing a digital glowing block.

Illustration: Gabriella Turrisi/Axios

Crypto trading and custody company is in talks to raise capital that could value it significantly below its last round of funding, Bloomberg reports citing sources.

Why it matters: Valued at $14 billion just in March, the new round of funding could value the business at $3 billion to $4 billion — a signal that more pain is still to come for crypto startups that grew too quickly.

Background: went from $5.2 billion to $14 billion in valuation over just a year. It may now retrench those gains — and more in less time.

Zooming out:'s potential new valuation (finally) puts it in line with the downturn seen in public markets.

  • Shares of Coinbase are down about 78% since their peak. A $3 billion to $4 billion valuation would mean that is suffering a similar re-valuation.
  • Crypto lender BlockFi is also said to have been close to closing a round of funding at a roughly 79% lower valuation over the summer, per the Block.

Of note: laid off 25% of its staff earlier this year, scrapped plans to expand in several countries, and was among the lenders hit by Three Arrows Capital's collapse.

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