Blockchain.com Secures $110 Million in Series E Funding: Market Valuation Halved Amid Tough Times for Crypto
Leading Investment Firm Kingsway Capital Heads New Funding Round
The world’s leading platform for digital assets, Blockchain.com, recently procured a noteworthy $110 million in its Series E funding round. The funding round was majorly led by UK-based investment management firm, Kingsway Capital, with notable participation from eminent financial and investment firms.
Among the top investors were renowned names such as Baillie Gifford, Lakestar, LSVP, Access Industries, Moore Capital, Prudence, LSVP and GV. Others on the investment panel included Freeman Capital, Coinbase Ventures, and Pledge Ventures.
Board of Directors Welcomes New Faces Following Funding
Following the successful closing of the funding round, Blockchain.com has welcomed two prominent industry figures to its Board of Directors. Both Manny Stotz, CEO of Kingsway Capital, and Nicolas Brand, Partner of Lakestar, have accepted roles on the governing body of the crypto giant.
Market Valuation Faces a Blow: Down to $7 Billion From $14 Billion
While the successful Series E funding may appear as a beacon of success for the company, Blockchain.com is facing a significant dip in its market valuation. This new funding has repositioned the company’s valuation to less than $7 billion, which is a stark fall from its previous considerable worth of $14 billion in March 2022.
The decrease in valuation is largely attributable to the financial losses experienced by the company during the recent crypto winter. The term ‘crypto winter’ refers to a period of severe downturn in the prices of cryptocurrencies. The crisis led the company to initiate several contingency measures, such as the closure of offices, suspension of expansion plans, and an unfortunate 25% reduction of the workforce.
Three Arrows Capital Owes a Mammoth Loan to Blockchain.com
Adding to the company’s turbulent times, Three Arrows Capital (3AC), another significant name in the crypto industry, has failed in its obligation to Blockchain.com. The company owes Blockchain.com a whopping amount approximating $270 million. The owed amount includes both cryptocurrency and US dollar loans, which thus far remain unsettled.
The recent turn of events for Blockchain.com has been reported by Cryptonews, a leading provider of news and information in the cryptocurrency industry.
A Glimmer of Hope Amid Troubled Times
Despite the hardships faced by Blockchain.com in recent times, it is hopeful that the new round of funding and inclusion of stalwarts like Manny Stotz and Nicolas Brand in the Board of Directors will instil renewed vigour and inject impetus in its operations. Additionally, this event serves as a stark reminder of the volatile nature of the cryptocurrency industry, and a testament to its resilience.