Crypto funding rounds climb as IPO valuations lag behind past peaks

Big money is returning, but investors want lower prices

Crypto companies are raising billions again, but investors are no longer paying the same high premiums they did during the last market boom. Kalshi is reportedly seeking $1 billion at a $40 billion valuation, nearly double what it was worth in May. Meanwhile, Blockchain.com is preparing for an initial public offering at a potential $4 billion to $6 billion valuation, well below the $14 billion it commanded in the previous cycle.

The trend is even starker among digital asset treasury companies, which hold cryptocurrency on their balance sheets. According to DWF Ventures, only four of the 20 largest such firms still trade above the value of their crypto holdings.

What investors are paying

• Kalshi seeks ~$1 billion in a new funding round at a $40 billion valuation, up from $22 billion in May.
• Blockchain.com is targeting a $500 million IPO at a $4 billion to $6 billion valuation, down from $14 billion.
• Sequoia Capital and Wellington Management are leading Kalshi's round, with Tiger Global and Dragoneer potentially involved.
• Only Bit Digital, Strive, Hyperliquid Strategies, and BitMine trade above NAV among the top 20 crypto treasury firms.
• Shares of recently listed crypto firms Gemini, BitGo, and eToro remain 50% to 80% below their post-IPO highs.

What the DWF report says

DWF Ventures released a report finding that the crypto treasury model has largely lost its early advantage. The premium model allows companies to issue shares and buy more crypto without diluting existing holders. But when shares trade below the net asset value of their holdings, raising equity becomes dilutive and undermines that financing mechanism.

Since MicroStrategy pioneered the Bitcoin treasury model in 2020, most digital asset treasury stocks have underperformed simply holding the underlying crypto asset directly.

Bitget recovery outlook dims

Bitget CEO Gracy Chen said she is not optimistic about recovering funds from the exchange's $388 million security breach, pointing to the 2025 Bybit hack as a reference. Bybit had frozen only about 3.5% of the roughly $1.5 billion stolen in that attack, Chen noted. "That's only the freezing. It's not about recovery yet," she said.

Bitget initially reported $352 million lost before revising the figure to $388 million. NEAR Intents blocked more than $50 million tied to the attack, and Tether and Circle blacklisted a wallet, freezing $318,013 in USDT and USDC. Chen said North Korea may be responsible based on matching IP addresses, though it has not been proven. Withdrawals have resumed in stages, starting with Bitcoin and followed by Ethereum.

What is confirmed

Kalshi is in advanced talks for a $1 billion funding round at a $40 billion valuation, according to Reuters. Blockchain.com confidentially filed draft registration documents with the SEC in May and is reportedly seeking a $4 billion to $6 billion IPO valuation, per Bloomberg. DWF Ventures confirmed that only four of the top 20 crypto treasury companies trade above NAV. Bitget's loss figure was revised from $352 million to $388 million, and the exchange has resumed withdrawals in stages.

What is still unclear

Kalshi's funding terms could change and the round is not yet final, according to the report. Blockchain.com remains open to a smaller offering if needed. Responsibility for the Bitget hack, including whether North Korea is involved, has not been proven.

Why this matters for crypto investors

The shift signals a more disciplined investor base. Crypto fundraising is active again after a prolonged downturn, but valuations reflect a market that is pricing in real risks rather than blindly paying premiums. For holders of publicly traded crypto treasury stocks, the data suggests direct ownership of the underlying asset may now offer better returns than buying through company shares.

What happens next

Kalshi's funding round could close in the coming months, though terms remain subject to change. Blockchain.com's IPO timeline has not been finalized beyond its May SEC filing. Bitget continues to work on recovery efforts while gradually restoring withdrawals.

Sources

• Cointelegraph