Blockchain.com is in talks over a down-round fundraising that could see the digital asset exchange’s valuation slashed by up to 78%, according to a Bloomberg report.
Anonymous sources said that Blockchain.com is prepared to accept funding terms that would see the Luxembourg-headquartered company’s worth cut from US$14bn to US$3bn.
A funding round in March 2022 led by Lightspeed Venture Partners more than doubled Blockchain.com’s market valuation, but the following collapse in the crypto market severely impacted its revenue stream.
The rumours are in line with a wider trend that has seen venture capital into crypto startups plunge.
Venture capital firms invested $4.44bn in crypto startups in the third quarter of 2022, a 37% decline from the same period in 2021, according to Pitchbook data.
Blockchain.com is a mid-sized exchange that originated in 2011 as a bitcoin scanner before launching a hugely popular wallet in 2012.
The company launched its own exchange focusing on institutional investors in 2019.