Recent funding alters Blockchain.com's valuation, now below $7 billion, according to Bloomberg reports.
Cryptocurrency exchange Blockchain.com has successfully raised $110 million in Series E financing, led by UK-based investment management firm Kingsway Capital. Other participants in this funding round include Baillie Gifford, Lakestar, Lightspeed Venture Partners, Coinbase Ventures, and more, as stated in a company release. Despite reaching a valuation of $14 billion in March 2022 after a Series D financing round, the current valuation is reported to be "less than half of" that, according to Bloomberg, which cites insider sources.
Manny Stotz, the founder and CEO of Kingsway Capital, and Nicolas Brand, a partner at Lakestar, have joined Blockchain.com's board of investors following this funding round. Kingsway Capital had previously led an undisclosed funding round for Blockchain.com in the third quarter of the previous year, according to reports from October 2022.
Blockchain.com faced challenges in 2021 when it suffered a $270 million loss due to the collapse of the crypto lender Three Arrows Capital, to which Blockchain.com had lent funds. To mitigate the impact, the company laid off 150 employees, constituting 25% of its workforce. The firm also closed its Argentinian office and reduced the CEO's compensation in July 2022.
Despite these challenges, Blockchain.com's successful Series E financing indicates investor confidence in the platform's potential for growth and recovery.
