Crypto Premium Fades as Investors Demand More Realistic Valuations

Crypto companies are once again raising billions of dollars in funding rounds, but investors have become more discerning about valuations.

Kalshi is reportedly seeking $1 billion at a valuation nearly double its May level of $22 billion, while Blockchain.com is preparing for an initial public offering (IPO) at a potential $6 billion valuation, down from the $14 billion it commanded during the last crypto boom.

The divide between investors' willingness to pay premiums and companies' valuations has become more pronounced among digital asset treasury companies. Only four of the 20 largest still trade above the value of their holdings, indicating a shift away from the earlier enthusiasm for these types of investments.

Bitget CEO Gracy Chen expressed pessimism about recovering funds lost in the exchange's $388 million security breach, drawing parallels with the 2025 Bybit hack. Withdrawals have resumed, but the chances of recovery remain slim.