Blockchain.com has successfully secured $110 million in its most recent Series E funding round, led by the UK-based investment management firm, Kingsway Capital. Notable participants in this funding round include Baillie Gifford, Lakestar, LSVP, GV, Access Industries, Moore Capital, Prudence, Freeman Capital, Coinbase Ventures, and Pledge Ventures. As part of this financial boost, Manny Stotz, the CEO of Kingsway Capital, and Nicolas Brand, a Partner at Lakestar, have joined the Board of Directors at Blockchain.com.
The Series E funding round has resulted in a recalibration of Blockchain.com’s market valuation, now standing at just under $7 billion, according to insights from a source familiar with the matter as shared with Bloomberg. This valuation marks a significant contrast to the $14 billion achieved by the company in March 2022. Notably, before the upheavals in the blockchain and crypto industry, Blockchain.com concluded a Series D funding round with the participation of Baillie Gifford and Lightspeed Venture Partners. The valuation in that previous round soared from $5.2 billion to $14 billion.
Blockchain.com’s Response to Crypto Winter
Blockchain.com, an early entrant into the cryptocurrency exchange sector and a significant contributor to shaping the digital asset economy, has played a crucial role with its trading platform and crypto wallet, serving both individual and institutional clients. However, the impact of the crypto winter has been substantial.
In July 2022, Blockchain.com announced the closure of its offices in Argentina and the suspension of expansion plans in multiple other countries. During the same month, the company made the difficult decision to reduce its workforce by 25%, equating to approximately 150 employees, in response to financial setbacks resulting from the severe bear market.
Adding to the challenges, Blockchain.com CEO Peter Smith revealed in a letter to shareholders that the unsuccessful Three Arrows Capital (3AC) was swiftly approaching insolvency, with a default impact of around $270 million in cryptocurrency and US dollar loans owed to Blockchain.com.