The crypto exchange Blockchain.com has recently made headlines with its successful Series E funding round, raising a staggering $110 million. Led by UK-based investment management firm Kingsway Capital, this round also saw participation from notable firms such as Baillie Gifford, Lakestar, LSVP, GV, Access Industries, Moore Capital, Prudence, Freeman Capital, Coinbase Ventures, and Pledge Ventures.
This new injection of funds has allowed Blockchain.com to reset its market valuation, which now stands at less than $7 billion. This figure is a significant contrast to the $14 billion valuation the company achieved in March 2022. Despite the drop in valuation, the Series E funding round marks a positive development for Blockchain.com.
The New Board Members and Their Vision
The Series E funding round has also brought new additions to the Blockchain.com Board of Directors. Manny Stotz, CEO of Kingsway Capitaland, and Nicolas Brand, Partner of Lakestar, have joined the company’s leadership team. Their expertise and strategic insights are expected to guide Blockchain.com in its future endeavors.
Blockchain.com, known for its cryptocurrency trading platform and crypto wallet, has been at the forefront of shaping the digital asset economy. Its services cater to both individual and institutional clients, providing a range of crypto transactions. However, the company has not been immune to challenges.
The Harsh Realities of the Crypto Winter
In July 2022, Blockchain.com made the tough decision to close its offices in Argentina and halt expansion plans in several other countries. This move was a result of the crypto winter, a period of intense market volatility and decline in the blockchain and crypto industry.
The financial losses caused by the bear market also prompted Blockchain.com to lay off approximately 25% of its workforce, amounting to around 150 employees. CEO Peter Smith addressed these challenges in a letter to shareholders, highlighting the impact of the failed Three Arrows Capital (3AC) which resulted in significant debt for the company.
“[Three Arrows Capital] was rapidly becoming insolvent and the default impact is approximately [USD] 270 million worth of cryptocurrency and US dollar loans from Blockchain.com.” – Peter Smith, CEO of Blockchain.com
Despite these setbacks, Blockchain.com remains determined to navigate through the storm and continue its mission of revolutionizing the cryptocurrency landscape. With a fresh infusion of funds and new board members, the company is poised to overcome the challenges and seize opportunities in the rapidly evolving digital asset market.
