BlockFi looks to raise new cash at reduced US$1b valuation: sources
CRYPTO lending platform BlockFi is looking to raise new funding that would value the company at about US$1 billion, according to people with knowledge of the plan.
The firm may raise around US$100 million, though the amount is still being finalised, said the people, who asked not to be identified because the transaction is private. BlockFi previously raised US$350 million at a US$3 billion valuation in March of last year. The company's fundraising plans were first reported by crypto news outlet The Block.
The depressed valuation comes as crypto firms struggle to navigate a broad-based selloff in digital assets that's spurring an industry-wide chill. Other crypto businesses like Gemini Trust have laid off staff, while companies like Coinbase Global, have frozen hiring and rescinded job offers.
Bain Capital Ventures, DST Global, Castle Island Ventures and Peter Thiel's Valar Ventures are expected to participate in the round, according to the people, who noted that investors remain upbeat about BlockFi's prospects.
Still, it's been a rocky road as of late for the company, which agreed to pay US$100 million to the US Securities and Exchange Commission over allegations that it was selling its crypto lending product as an unregistered security.
A representative for BlockFi said that the company doesn't comment on market rumours when reached for comment. Bain Capital Ventures, DST Global and Valar Ventures did not immediately respond to requests seeking comment, while Castle Island Ventures declined to comment.
The Information last year reported that BlockFi was seeking to raise funds at a valuation of US$5 billion. BLOOMBERG
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