Blockchain.com, a crypto exchange and financial services platform has dismissed the claims to sell assets or subsidiaries. According to the Blockchain.com’s spokesperson, the firm is not discussing any possible deals with other crypto firms, as per Cointelegraph report.
Blockchain. com has denied attempts to sell assets or subsidiaries despite efforts to raise capital. https://t.co/6dpcH2lpIA
— Cointelegraph (@Cointelegraph) February 19, 2023
However, according to the reports, a person familiar with the matter noted that the company executives addressed selling part of its business to other crypto firms, including Coinbase. The discussions took place between December last year and January this year. However, Blockchain.com has denied the allegations, noting:
No Blockchain.com businesses are for sale. Blockchain.com is a buyer, not a seller.
Since October last year, Blockchain.com has been working on increasing extra capital for its business operations, even at a significant discount to previous valuations. According to a Bloomberg report, the round was expected to total a $3 billion to $4 billion valuation. The potential round would enable Blockchain.com to have its way through the crypto bear market.
Noteworthy, Blockchain.com doesn’t refute the attempts to raise capital. However, it disputes the allegations of selling the assets and other subsidiaries. Recently, the firm’s ventures arm exited an 80% position at PolySign, a foundation working on infrastructure for financial institutions.
Blockchain.com, founded in 2011, is among the world’s largest crypto platforms. It offers various blockchain-based financial services, from its exchange platform and crypto wallets to specific institutional products. The platform is claimed to have 37 million verified users with 86 million wallets in 200 countries.
In March 2022, Blockchain.com reportedly secured new funding led by global venture capital company Lightspeed Ventures and investment management platform Baillie Gifford & Co. The investment round saw Blockchain.com’s valuation rise from $5.2 billion to $14 billion.
Notably, Blockchain.com’s major funding round occurred in March 2021. The Series C round saw the platform raise $300 million at a $5.2 billion valuation. The funding round was led by DST Global Partners, Lightspeed Venture Partners and VY Capital, as well as $120 million from a wide array of venture capital companies.
Additionally, Blockchain.com is among the firms that added their names to the list of platforms withdrawing from the United Kingdom’s Financial Conduct Authority’s (FCAs) temporary register. The temporary register for crypto-asset licensing stated that firms must be approved under an Anti-Money Laundering (AML) scheme or stop trading. However, Blockchain.com withdrew its application, choosing to operate in Europe through a Lithuanian registration.
In April 2021, Blockchain.com hit the headlines in the crypto space. The company secured a $100 million investment from Baillie Gifford & Co., which at the time was the single most significant investment ever made in the platform.
The platform’s struggle through the bear market
The ongoing bear market stung various crypto platforms, in which Blockchain.com is not an exception. In January, about 110 employees or 28%, were laid off, months after the company downsized its headcount by 150 in July 2022. This was due to a loss of about $270 million on loans made to the bankrupt hedge fund Three Arrows Capital (3AC).
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