BlockFi raised $350 million at a larger valuation of $3 billion in March last year.
Crypto lender BlockFi is set to close a funding round at a lower valuation than its previous raises, according to a report by The Block.
The round will value the New Jersey-based firm at $1 billion, according to the report, which cites sources with knowledge of the matter.
The funding known as a “down round” occurs when a company seeks to raise more capital and discovers that its valuation is lower than during a previous financing.
BlockFi raised $350 million at a larger valuation of $3 billion in March last year. It was reportedly set to raise a further $500 million, valuing it at nearly $5 billion, in late July and had also been making known its plans to go public.
The lower valuation points to the more challenging atmosphere in the crypto industry at present as well as regulatory uncertainty surrounding firms such as BlockFi, which offers high interest payouts against crypto holdings.
In February the firm agreed to pay a total of $100 million in penalties to the U.S. Securities and Exchange Commission (SEC) and several state regulators as part of a settlement in an investigation into whether its high-yield lending product was a securities offering.
BlockFi had not responded to CoinDesk’s request for comment about its latest funding round at press time.