Blockchain.com, a financial services firm and cryptocurrency exchange, has recently denied rumors about selling any of its assets or subsidiaries. Reports claimed that the company discussed selling parts of its business to other crypto firms, including Coinbase, between December and January. However, a spokesperson for the firm told Cointelegraph on Feb. 18 that no Blockchain.com businesses are for sale, as the company is an asset buyer, not a seller.
Raising Additional Capital
While the company disputes the claims about selling assets, it has been working on raising additional capital for its operations since October 2022. A Bloomberg report suggested that the round was expected to result in a $3 billion to $4 billion valuation, a significant discount to previous valuations. The potential round would help Blockchain.com to navigate the current crypto bear market better.
Venture Arm Exits Position
Despite rumors about the sale of assets or subsidiaries, Blockchain.com’s venture arm recently exited an 80% position at PolySign, a startup working on infrastructure for financial institutions. The company claims to have over 37 million verified clients using 86 million wallets and a presence in 200 countries.
Employee Layoffs
However, the company did experience some setbacks in the past. In January, about 110 employees from Blockchain.com, or 28% of its staff, were laid off, just a few months after the company downsized its headcount by 150 in July 2022 following a loss of $270 million on loans made to the bankrupted hedge fund Three Arrows Capital (3AC).
Funding History
Blockchain.com has a significant history of funding, including a $300 million Series C round in March 2021 led by DST Global Partners, Lightspeed Venture Partners, and VY Capital, as well as $120 million from a wide array of venture capital firms. In March 2022, the company secured new funding led by global venture capital firm Lightspeed Ventures and investment management firm Baillie Gifford & Co, bringing its valuation to $14 billion from $5.2 billion.
What Does the Future Hold for Blockchain.com?
Blockchain.com is not in talks with other crypto firms about possible deals, but it is working on raising additional capital to navigate the current bear market. While the recent layoffs may be a setback, the company has a significant presence globally and a history of successful funding rounds. Time will tell what the future holds for Blockchain.com and the cryptocurrency industry as a whole.
