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Crypto firm Blockchain.com brings bitcoin mania to a valuation of $ 5.2 billion

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Blockchain Co-Founder and CEO Peter Smith speaks during the Web Summit technology conference on November 6, 2018 in Lisbon, Portugal.

Pedro Fiúza | NurPhoto via Getty Images

LONDON – Blockchain.com, one of the world’s largest cryptocurrency wallet providers, announced Wednesday that it had raised $ 300 million in a mega-fundraising round that valued the company at $ 5.2 billion.

The London-based startup announced that its recent cash injection was led by DST Global, Lightspeed Venture Partners and VY Capital. It comes just a month after the company raised $ 120 million on a $ 3 billion valuation.

Blockchain.com claims to have been responsible for around 28% of all Bitcoin transactions since 2012. It is best known for its digital wallets that store cryptocurrencies, but has recently started trading its own virtual currency exchange.

The company derives its name from the blockchain network of the same name, which records all Bitcoin transactions.

Venture capitalists are trying to capitalize on the boom in Bitcoin and other cryptocurrencies that has increased over the past year as mainstream investors warmed the market.

Big companies like Tesla and Square have also chosen Bitcoin. Elon Musk’s electric vehicle maker bought the $ 1.5 billion cryptocurrency earlier this year.

Peter Smith, Founder and CEO of Blockchain.com, said in a blog post on Wednesday that the business is “highly profitable in each of our businesses” and margins in the first two months of this year have already exceeded those of 2020.

Blockchain.com now has over 31 million verified customers in over 200 countries and has tripled its user base in the past 12 months, Smith said. The company will spend the fresh money expanding its products, hiring employees worldwide, and tracking mergers and acquisitions.

The company has been backed by hedge fund managers like Louis Bacon and Kyle Bass, as well as billionaire entrepreneur Richard Branson, Alphabet Venture Arm GV, and early Spotify backer Lakestar.

The news of Blockchain.com’s latest investment round comes as Coinbase, the largest cryptocurrency exchange in the US, prepares a blockbuster IPO. According to a filing, the company was last valued at $ 68 billion.

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Katherine Clark