Crypto lender BlockFi is raising new funding at a $1 billion valuation

余YU

读者

2022-06-07 06:57

This article is about 871 words, reading the full article takes about 2 minutes

Shrinking valuations may be a new trend?

AI Summary

Expand

Shrinking valuations may be a new trend?

This article comes fromThe Block, Originally by Frank Chaparro

Odaily Translator |

Encrypted financial services company BlockFi is closing a new funding round — this time at a lower valuation ($1 billion) than its previous round, according to three people familiar with the matter.

BlockFi reportedly raised funding last year at a valuation of more than $5 billion. The news provides a signal that the problem of compression in public market token and stock valuations is also happening in private markets.The company was founded in 2017 by Zac Prince and Flori Marquez to provide a way to borrow funds using their crypto assets. Announced by BlockFi in March 2021Completed $350 million Series D financing at a valuation of $3 billion

, Bain Capital Ventures and others led the round. At the time, the company boasted of high-growth metrics like a $10 billion loan track record and 265,000 retail accounts.

The new funding round will be led by venture capital firm Bain Capital Ventures, with participation from DST and Valar, the sources said.

A BlockFi spokesperson said, “BlockFi does not comment on market rumours.”

Considering that venture capital capital was still highly active just a few months ago, BlockFi’s lower funding valuation represents a notable development in the crypto services industry.

Over the past year, many companies in the cryptocurrency market have been valued at more than $1 billion, including exchanges such as Gemini and data providers such as Dune Analytics. Venture capital firms will deploy a total of $28.94 billion in funding in 2021, according to data compiled by The Block Research.

“Private valuations are adjusting,” one market participant said of the current environment for private crypto companies.

In February, BlockFi reached a settlement with the U.S. Securities and Exchange Commission (SEC) and U.S. state regulators over its cryptocurrency interest-bearing products. BlockFi will pay a $50 million fine to the US SEC and $50 million to the states. BlockFi previously told The Block that it plans to offer a similar product to its more than 600,000 users after obtaining the necessary regulatory approvals.As CoinDesk reported in February,At the time, BlockFi said it planned to submit a draft S-1 registration statement to the US SEC.