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Blockchain.com Seeks Funds to Cover Exposure to Three Arrows Capital

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It is reported that Blockchain.com has been trying to sell assets to fill its exposure to Three Arrows Capital (3AC) of US $270 million. The spokesman said tha…

Blockchain.com Seeks Funds to Cover Exposure to Three Arrows Capital

It is reported that Blockchain.com has been trying to sell assets to fill its exposure to Three Arrows Capital (3AC) of US $270 million. The spokesman said that its venture capital department BlockchainVentures recently sold 80% of the shares of PolySign. Blockchain.com participated in the US $53 million round B financing of this infrastructure start-up in 2021. According to the source, the company is still actively seeking to raise more funds, even if the valuation is significantly reduced, and hopes to provide debt warrants.

Blockchain.com sold assets to fill its exposure to Sanjian Capital of US $270 million

Interpretation of the news:


Blockchain.com, a leading provider of cryptocurrency wallets and exchange services, is reportedly looking to sell assets in order to cover its exposure to Three Arrows Capital (3AC), a US-based hedge fund that has invested heavily in the crypto space. According to industry sources, the company is seeking to raise funds despite the possibility of a significant reduction in valuation, and is also exploring the option of offering debt warrants.

The news follows reports earlier this year that Blockchain.com had received a $300 million investment from 3AC, in a deal that valued the company at $5.2 billion. At the time, the investment was seen as a major vote of confidence in the blockchain and cryptocurrency sector, as well as in the future prospects of Blockchain.com itself.

However, it now appears that Blockchain.com has been more exposed to 3AC than may have been initially realized, with the company reportedly hoping to sell assets, possibly at a discount, in order to cover its $270 million exposure. The move is indicative of the challenges facing many companies in the crypto space, as they navigate a complex and rapidly-changing landscape that is still largely untested in terms of wider public adoption.

However, there is little doubt that the potential rewards for those who do navigate this space successfully can be enormous, as evidenced by the recent boom in cryptocurrencies such as Bitcoin and Ethereum. Blockchain.com remains one of the key players in this space, with a reputation for innovation and technical excellence that puts it ahead of many of its rivals.

As such, there is likely to be continued interest in the company from investors looking to capitalize on the potential of the crypto space, even as Blockchain.com itself seeks to find new ways to raise funds and manage its exposure to a small number of key investors such as 3AC. Whatever the outcome, the current situation highlights both the opportunities and the challenges facing those who seek to navigate the rapidly-evolving world of blockchain and cryptocurrency.

In conclusion, Blockchain.com is trying to rectify its exposure to Three Arrows Capital by selling assets and raising funds, even if it means valuations are reduced. Blockchain.com hopes to offer debt warrants to cover any remaining shortfall of funds. The company’s position highlights the challenges facing the blockchain and cryptocurrency industry, as it continues to adapt to the fast-paced and untested space of cryptocurrency.

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