Consensys is in talks with investors amid declining stock prices – media
Date: 2023-07-18 Author: Karina Ziganova Categories: BUSINESS
Representatives of Consensys assure that the company remains in a satisfactory financial position and does not need investments
Blockchain company Consensys, which owns MetaMask and other cryptocurrency projects, has been in talks with investors about a potential capital injection. The Block writes about this, citing sources close to the negotiations. According to insiders, in July, the company met with several investors on the issue of raising capital. It is unclear who exactly he is talking about.
In 2022, the company raised $450 million in an investment round led by venture capital firm ParaFi Capital. Then, according to the results of investments, the company's valuation amounted to $ 7 billion. The pool of investors included SoftBank Vision Fund 2, Temasek and Microsoft, but it is unclear whether these companies appear in the new negotiations.
A representative of Consensys in a media commentary denied rumors about the financial instability of the company. They said that the company sometimes considers "investor interest", but Consensys still has a lot of money.
"Consensys is widely perceived as a winner after the 2022 fiasco [then many companies went bankrupt]. Consequently, the company experienced a significant influx of interest from investors, driven in part by inaccurate reports about the position of our shares in the secondary market earlier this year," a Consensys spokesperson explained.
In March, the media found out that the discount on Consensys shares in the secondary market exceeded 70%. Then the fall in stock prices was not limited to Consensys and affected Blockchain.com, Chainalysis, OpenSea and others. Sources of The Block claim that at the end of the round under discussion, the valuation of Consensys will fall below $ 7 billion. What is the stock price of Consensys in the secondary market is unclear.
Consensys was founded in 2014, and the company itself is still private. In total, it attracted over $725 million in investments, according to the Crunchbase service.
