A denial that has the merit of being clear – Blockchain.com is in the list of companies exposed to Three Arrows Capital (3AC), and whose finances are strained by the bitcoin price drop (BTC) and cryptocurrencies in general during these bear markets. The company is exploring options to support its cash flow, but says it has no no intention of giving in some of its assets.
Speaking to news outlet Coin Telegraph, a Blockchain.com spokesperson said disputed information that indicates that the company would attempt to sell assets or subsidiaries. The company would not be in talks with other crypto companies on this subject.
The media that quoted anonymous sources to claim that the leaders of Blockchain.com were discussing with those of other crypto companies, including Coinbase, would therefore have been mistaken. The reality would be more nuanced.
Blockchain.com does not sell its companies, but the branch ” risk “ of the company has sold 80% of its stake in the startup PolySignwhich develops infrastructures that meet the expectations of financial institutions wishing to take advantage of digital assets.
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A fundraiser in down-round against bear markets
If Blockchain.com does not intend to part with its assets at this time. However, the company does not deny claims that it is seeking to raise funds.
A article of October 26 from Bloomberg reported that the company was in talks to raise funds in ” down-round ». In other words, the company seeks to raise fresh capital, even if it means lowering its valuationduring a financing round at a lower share price than the previous one.
Quoting an anonymous source, the Bloomberg article indicates that following such an operation, the valuation of Blockchain.com will only amount to approximately 3 or 4 billion dollarsagainst the $14 billion valuation at the end of its March round, with investors Baillie Gifford and Lightspeed Venture Partners.
I’crypto winter did not spare Blockchain.com which must also find liquidity to ensure its sustainability. In view of the latest news, the company therefore seems to favor the fundraising option rather than the sale of its subsidiaries. Faced with financial constraints during these bear markets, the company had also reduced its operating budget. by laying off 25% of its staff, about 150 people, in July. She then had closed its offices in Argentina.
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