Blockchain.com, a prominent player in the cryptocurrency exchange and wallet services sector, has successfully closed a $110 million funding round, spearheaded by UK-based Kingsway Capital.
This financing round signals a resurgence in venture-capital investments within the crypto space, underscored by the ongoing rebound in digital asset prices this year.
The Series E strategic financing not only attracted Kingsway Capital but also saw participation from notable investors such as Baillie Gifford, Lakestar, Lightspeed Venture Partners, Coinbase Ventures, and others.
In a strategic move, Blockchain.com is welcoming two new board members from Kingsway and Lakestar.
However, the company’s valuation post-funding is reported to be less than half of its $14 billion valuation in the spring of 2022, as disclosed by an anonymous source familiar with the matter.
Blockchain.com faced challenges, typical of many crypto enterprises, amid the market downturn in 2022.
The company, which had disclosed significant exposure to the Three Arrows Capital hedge fund collapse, navigated through the industry-wide turbulence, including staff layoffs.
The resurgence in the cryptocurrency market in 2023, marked by Bitcoin’s more than doubling in price, has contributed to renewed optimism.
The anticipation of regulatory approval for a cryptocurrency exchange-traded fund (ETF) has been a driving force.
This funding round for Blockchain.com reflects a broader trend of thawing venture-capital investments in the crypto space, showcasing a renewed confidence in the industry’s prospects.
