Report: Cryptocurrency platform Blockchain.com has held talks about going public via SPAC
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The cryptocurrency industry is experiencing a wave of IPOs, with cryptocurrency trading platforms and wallet service provider Blockchain.com recently holding talks about going public in the United States through a SPAC. Several peer companies have already completed or are planning IPOs this year.
On October 20, according to media reports citing two people familiar with the matter, the company has discussed a potential SPAC deal. One of the sources said that Blockchain.com has appointed Cohen & Company Capital Markets as an advisor for the potential SPAC deal. It is currently unclear whether the related negotiations are still ongoing.
SPAC (Special Purpose Acquisition Company) is a financial tool that raises funds through an IPO and merges with a target company within a specified period to achieve indirect listing. SPACs are typically initiated by private equity professionals who, after raising funds via an IPO, look for suitable target companies within 18-24 months to merge with, thus enabling the target company to go public by inheriting the SPAC's listed status and secure financing.
As of the time of this report, neither Blockchain.com nor Cohen & Company Capital Markets has commented.
The potential valuation of Blockchain.com in the deal is still unclear, but the company’s fundraising valuations over the years have fluctuated dramatically due to market volatility. In March 2021, the company raised $300 million at a post-investment valuation of $5.2 billion. The following year, a new funding round raised its valuation to $14 billion. However, according to Bloomberg, by November 2023, a $110 million funding round valued Blockchain.com at $7 billion.
Blockchain.com has joined the wave of crypto companies going public this year. Stablecoin issuer Circle went public via IPO in June, CoinDesk’s parent company Bullish went public in August, and cryptocurrency exchange Gemini went public in September. According to media reports, competitor Kraken also plans to go public early next year.
According to a February report, Blockchain.com sent positive signals about a potential public listing by appointing two seasoned executives. The company hired former Goldman Sachs employee Justin Evans as Chief Financial Officer, and named Mike Wilcox, former CFO of Velocity Global and portfolio manager at Point72, as Chief Operating Officer.
Evans stated at the time:
The exchange is “taking necessary steps to become a publicly listed company, if public market conditions permit.”
Blockchain.com has also expanded its business into several African countries, including Ghana, Kenya, and South Africa.
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