Blockchain.com Closes $110M Funding as Investors Show Renewed Interest in Cryptocurrency
A number of reputable investors participated in the Series E funding round, among them there were Lakestar, Lightspeed Venture Partners, Coinbase Ventures, and Baillie Gifford.
Blockchain.com, a leading cryptocurrency exchange and wallet provider, recently raised $110 million in a Series E equity financing round that was led by UK-based Kingsway Capital. The latest investment comes despite the firm’s valuation falling below half of its previous $14 billion figure that it had earlier this year.
Blockchain.com provides one of the biggest crypto exchange and wallet provider services in the world. The company presently has more than 82 million users, and its platform manages more than $1 trillion in transactions.
New Funding Round in Anticipation of Crypto Market Recovery
A number of reputable investors were involved in the Series E funding round. The names include Lakestar, Lightspeed Venture Partners, Coinbase Ventures, and Baillie Gifford. As part of the deal, Kingsway Capital and Lakestar are adding board members to the crypto exchange company. While the exact terms were not fully made public, sources cited by Bloomberg say the $110 million investment gave Blockchain.com a valuation a little below $7 billion. That is less than half of the $14 billion valuation from the company’s prior March 2022 funding round.
The success of the funding round and the increased valuation of Blockchain.com can be said to be a response to the signs of crypto price recovery. Just a few weeks ago, Bitcoin (BTC) broke an important resistance at around $31,000 and experienced a major price surge. Although the price was not as bullish over the last week, many analysts only see it as a temporary retrace, which is typical of price action.
Many altcoins have also seen significant price growth in recent weeks. Solana (SOL), Ethereum (ETH), Avalanche (AVAX), Shiba Inu (SHIB), and others are recovering in price, all pointing to a looming altcoin season. Without a doubt, all these are raising investors’ sentiment, as many of them are interested in investing in crypto and crypto-related businesses as a way of taking advantage of the recently renewed market sentiment.
Increased Investors’ Confidence in Crypto
The successful funding shows renewed investor appetite for crypto-focused firms and infrastructure providers. It is also too much of a surprise since major financial institutions like BlackRock and Fidelity are also showing a major interest in BTC, ETH, and XRP and are seeking approval to offer spot ETFs tied to crypto.
Although the crypto exchange service laid off a number of staff in January this year to be able to survive the long crypto winter, the recent funding also shows that Blockchain.com is making intentional efforts to expand its services and reach globally. The new funding will go a long way in helping the company achieve its goal despite being below its recent valuation of around $14 billion.
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