VCs also comeback when cryptocurrency reopens?…Blockchain.com attracts $300 million investment

This year, virtual assets have been steadily rising, centering on Bitcoin. [Photo: Shutterstock]
[Photo: Shutterstock]

[Digital Today Reporter Chigyu Hwang] Blockchain.com, a UK company that provides cryptocurrency wallets and exchange services, has attracted an investment of $300 million.

After a month of investing 120 million dollars, it again attracted large-scale funds. The corporate value also jumped. When it was invested last month, the value of the blockchain.com company was around $3 billion, but this time it has increased to $5.2 billion. This investment was led by DST Capital, Light Speed ​​Ventures, and VY Capital.

In this regard, the Wall Street Journal (WSJ) reported on the 24th (local time) that venture capital firms (VCs) are showing a growing willingness to re-enter the bitcoin craze.

Blockchain.com provides a variety of services such as wallet service that stores and manages cryptocurrencies, retail transactions, credit cards for professional investors, trading, and custody.

Blockchain.com’s $300 million investment attraction this time ranks third among VCs’ investments in the cryptocurrency sector. In 2018, cryptocurrency mining equipment company Bitmain raised $400 million, and earlier this year, cryptocurrency-based financial service provider BlockFi received an investment of $350 million. Baekt, a bitcoin futures exchange for institutional investors, attracted $300 million investment in 2020. Blockchain.com has achieved the same scale of transactions as Bakkt.

As the bitcoin price fell from its peak in 2017, the cryptocurrency industry’s investment attraction was sluggish. However, the recent situation is fueling expectations that private investors are returning, WSJ said.

This kind of heat could continue in the open market as well. Coinbase, an American cryptocurrency exchange, is planning to list on the NASDAQ this year. It plans to publicly disclose 111.5 million shares and raises $943 million in funding.

If Coinbase successfully IPOs, other companies can follow. It is not clear at this time whether Blockchain.com will become one of these. “We are carefully considering listing options,” said Peter Smith, CEO of Blockchain.com.

As the prices of bitcoin and other cryptocurrencies have risen, the blockchain.com business has only doubled this year. According to the current trend, the company said that this year’s profit will be at an all-time high. Blockchain.com plans to devote a large amount of funds secured from this investment to support institutional investors.

Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.