Blockchain.com seeks funding in potential down round
Crypto trading and custody company Blockchain.com 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: Blockchain.com 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: Blockchain.com'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 Blockchain.com 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: Blockchain.com 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.