Blockchain.com Gets More Funding Despite Tough Crypto Market

(Bloomberg) — Crypto exchange Blockchain.com said Friday that it had raised fresh funding in a strategic financing round led by UK-based investment firm Kingsway Capital, as firms throughout the industry take steps in a difficult environment to withstand the headwinds caused by this year’s downturn. 

The round, which also included investment from Baillie Gifford and Lightspeed Venture Partners, closed during the third quarter at a time when venture investing in crypto startups fell to its lowest level in more than a year. Blockchain.com declined to disclose the funding amount or its valuation. The company previously raised capital at a $14 billion valuation in March in a round that included Lightspeed Venture Partners and Baillie Gifford. 

The new investment shows how some crypto startups are raising money despite the turmoil in the sector. Crypto custodian Copper Technologies Ltd, which is based in the UK, recently raised $196 million. 

Token prices have slumped this year and startup valuations are likely under pressure. Long-standing executives are also departing high-profile firms. 

Blockchain.com is led by Chief Executive Officer Peter Smith. It laid off 25% of its staff, or about 150 people, in July and took a financial hit after the collapse of crypto hedge fund Three Arrows Capital.

The company, which also offers a digital-wallet service that allows users to hold cryptocurrencies like Bitcoin, seems to be pushing ahead despite the onset of crypto winter. 

Blockchain.com said in a statement that it had recently received regulatory approvals to operate in Italy, Dubai, Singapore and the Cayman Islands. 

©2022 Bloomberg L.P.

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