Blockchain.com will discontinue its asset management arm after less than a year of operation, according to a report from Bloomberg on March 9.
Blockchain.com will shut down subsidiary
Through its asset management division, Blockchain.com offered an investment strategy that tracked the price of Bitcoin against the dollar. It also planned to offer “algorithm-based risk-managed exposure” to Bitcoin, according to Bloomberg reports.
Blockchain.com has not yet officially announced the decision. However, the subsidiary has applied to be removed from the U.K. companies register in a filing.
That filing, dated March 6, is currently visible to the public.
The company’s first gazette notice for voluntary strike-off, which will more broadly inform creditors of the subsidiary’s shutdown, will become public on March 14.
Asset management arm lasted less than one year
Blockchain.com’s short-lived asset management service went live just 11 months ago.
Blockchain.com performed strongly last year. Though it is now valued at just $3 billion to $4 billion, it completed a fundraiser that allowed it to reach a $14 billion valuation in March 2022. This allowed the firm to launch its asset management service that spring.
A spokesperson said that Blockchain.com opened the service in April 2022 “shortly before macroeconomic conditions deteriorated rapidly.” Though the firm did not mention specific events, various crypto projects including Terra and Celsius collapsed at that time.
The decision is just one of Blockchain’s recent downsizing strategies. The firm laid off about 28% of its workforce in January following earlier layoffs in July 2022.
Decision should not affect most users
It does not appear that the decision will impact Blockchain.com’s retail users.
Blockchain.com offers a moderately sized crypto exchange, with $3.2 million of trading volume in the past 24 hours, according to data from Coingecko.
The company also provides various other services including a cryptocurrency wallet, an on-chain data explorer, and various institutional services.
The company operates in the U.K. but serves users in multiple locations.
Credit: Source link
