Blockchain.com will shut down its asset management division, BCAM, which was only 11 months old, in response to the “crypto winter,” the challenging market conditions of the cryptocurrency industry. A recent filing has confirmed the decision.
The filing stated that BCAM had voluntarily requested to remove its name from the register of companies in the United Kingdom.
Blockchain.com Bows To Crypto Winter Pressure
Despite being launched just 11 months ago in collaboration with Altis Partners, London-based BCAM has decided to cease its operations, even before filing its annual accounts.
A spokesperson for the company explained, “Blockchain.com Asset Management was launched in April 2022. Unfortunately, it was shortly before the rapid decline in macroeconomic conditions. With the crypto winter approaching its one-year mark, we have decided to pause operations for this institutional product temporarily.”
BCAM provided exposure for investors to Bitcoin and decentralized finance (DeFi) products through algorithm-based risk management. Last April, Blockchain.com had plans to take the company public by the end of the year and was in discussions with multiple banks regarding this goal.
In 2022, Blockchain.com had an outstanding performance. Although its current valuation is estimated to be between $3 billion and $4 billion, the crypto firm recently completed a successful fundraising campaign that boosted its valuation to $14 billion in March 2022.
This allowed the firm to release its asset management service in spring.
Blockchain.com Trying To Scale Through Crypto Winter
Meanwhile, Blockchain.com’s latest move to sunset its asset management arm is one of several actions the firm took to reduce its operations and increase profit. In January this year, the Cayman Islands-based company revealed it would let go of 28% of its workforce due to the extended crypto winter.
Reports indicate that Crypto.com, another cryptocurrency exchange, has released approximately 2,500 employees since 2022. Coincidentally, crypto exchanges are the top four companies with the most significant number of layoffs in the crypto industry.
Although Blockchain.com has not yet made an official announcement, the company has taken steps to remove its subsidiary from the UK business registry. This information was made public as the subsidiary has applied for removal, an application that is currently available for public access.
Despite the challenges posed by the crypto winter, Blockchain.com still achieved several significant milestones. Throughout 2022, the company could obtain operational licenses in multiple nations.
Furthermore, Blockchain.com collaborated with Visa to create a cryptocurrency card for the US market last October.