Blockchain.com reportedly targets $500M IPO at $4B to $6B valuation

What happened

Blockchain.com is reportedly looking to raise about $500 million in an initial public offering this year, more than four years after it reached a $14 billion valuation. Citing people familiar with the matter, Bloomberg reported that the company is seeking an IPO valuation of between $4 billion and $6 billion. It is also open to a smaller deal if that helps it complete a public listing.

In May, the company filed draft registration documents with the SEC on a confidential basis, without saying how many shares it would offer or at what price. 29.

Bloomberg reported on Sept. 28 that the brokerage has been discussing a potential deal with prospective investors. People familiar with those talks said the company may cut the size of the offering if a smaller listing helps it get done. A spokesperson declined to comment on the Bloomberg report.

Why it matters

The reported terms point to a lower bar than the last cycle. Blockchain.com's March 2022 funding round valued the business at roughly $14 billion, and a listing at the top of the reported range would still leave it at less than half that figure.

Appetite for new crypto listings looks uneven. According to Bloomberg, Gemini, BitGo and eToro shares are still down roughly 50% to 80% from their post-IPO highs.

Capital markets have started to reopen for crypto companies after a recovery that began last month. BTC has climbed more than 30% since mid-August, when the US Treasury announced it would increase buybacks of long-dated government debt, a move that helped drive a rally across crypto markets.

What the data shows

The reported raise is $500 million, against a valuation range of $4 billion to $6 billion. A $300 million Series C round valued Blockchain.com at $5.2 billion one year before the March 2022 round.

In November 2023, the company raised $110 million in a Series E round led by Kingsway Capital, at less than half of its former $14 billion valuation.

Background

Blockchain.com submitted its draft registration documents to the SEC confidentially earlier this year. That route lets a company start talks with SEC staff before its prospectus becomes public, and the reported terms remain preliminary.

The company recently signed an NYSE agreement to explore continuous trading of tokenized US stocks globally, and Bloomberg's report indicates it is still pursuing a listing before the end of 2026.

What is still unclear

• Blockchain.com has not publicly confirmed the $500 million target, the $4 billion to $6 billion valuation or a listing date.
• Because the SEC submission is confidential, financial statements, revenue figures and operating costs remain unavailable to investors.
• The reported terms are preliminary, so the size of the offering could still change.

Questions readers ask