TL;DR:
- Blockchain.com has held talks to go public through a SPAC merger, advised by Cohen & Company Capital Markets, although no final agreement has been guaranteed.
- The company went from a valuation of $5.2 billion in 2021 to $14 billion in 2022, and then to $7 billion in 2023, underscoring the volatile nature of the crypto market.
- Going public would boost access to institutional capital, but it also requires regulatory compliance and transparency that could strain the sector’s native identity.
The Blockchain.com exchange and digital wallet platform has been in talks to go public in the US through a merger with a special purpose acquisition company (SPAC), according to a CoinDesk report citing sources close to the matter. Under the guidance of Cohen & Company Capital Markets, the company is exploring this path without, for now, disclosing the specific terms or exact valuation of the transaction.
A bet between regulation and market uncertainty
Blockchain.com, which had already raised $300 million in March 2021 with a valuation of $5.2 billion, and raised its valuation to nearly $14 billion in 2022, was valued at just $7 billion in November 2023 following a $110 million round. This journey illustrates the intrinsic volatility of the crypto ecosystem and raises a disturbing backdrop when considering a jump to the public market. The firm has bolstered its management team in anticipation of such a transition, with names from traditional banking underpinning its path to regulated markets.
Interest in the SPAC route comes amid a wave of recent crypto listings, with other firms such as Circle, Bullish, and Gemini going public or considering it. The strategy allows for faster access to institutional capital, but also brings additional scrutiny: public investors will demand broader disclosures, rigorous financial metrics, and governance aligned with the traditional market. While Blockchain.com already operates globally, the formal leap to listing brings new legal, operational, and transparency obligations that the sector has not always handled smoothly.
This moment marks a turning point for the company: if it manages to close a SPAC merger, it will have to prove that it can operate at the pace demanded by public markets. Otherwise, its return to a largely private environment could become less viable. In this sense, the move represents both an opportunity and a risk: integrating the crypto world into the stock market and regulatory universe without losing its identity is a delicate balance.
