Blockchain.com, a prominent cryptocurrency exchange and wallet service, has successfully closed a $110 million Series E funding round.
The funding was led by UK-based Kingsway Capital, with participation from notable investors including Baillie Gifford, Lakestar, Lightspeed Venture Partners, and Coinbase Ventures.
The platform itself claims 37 million verified users, 82 million wallets, and a total transaction value of more than a trillion dollars across its platform.
The strategic financing round adds Kingsway Capital and Lakestar representatives to Blockchain.com’s board. Although the company’s valuation was halved from its peak of $14 billion in the spring of 2022, the latest funding marks a significant development following a challenging period for Blockchain.com.
Last fall, the company received strategic financing from Kingsway, and in March 2022, it completed a funding round that doubled its estimated value to $14 billion. However, the crypto market downturn in 2022 posed challenges, revealing the company’s exposure to the collapse of the Three Arrows Capital hedge fund, resulting in layoffs.
The cryptocurrency market experienced a rebound in 2023, with Bitcoin’s price doubling amid optimism about the potential approval of a Bitcoin exchange-traded fund (ETF). This resurgence in digital asset prices has reignited venture capital investments in the crypto sector.
Blockchain.com’s Series E funding reflects a trend of renewed investor interest, indicating a growing appetite for crypto-related ventures. The broader market sentiment is influenced by pending applications for spot Bitcoin ETFs from major financial firms like BlackRock and Fidelity.
Bitcoin (BTC) has shown a remarkable 116% increase in the past year, with other major cryptocurrencies such as Ether (ETH) and Solana (SOL) recording gains of 61% and 300%, respectively, over the same period.