Blockchain.com, the crypto exchange and custody wallet provider, is seeking to raise approximately $500 million in an initial public offering this year, according to a Bloomberg report published Monday that cited people familiar with the matter.

The company is targeting a valuation of between $4 billion and $6 billion, Bloomberg reported. That range sits well below the $14 billion valuation Blockchain.com commanded in 2022, at the height of the previous crypto market cycle. Management would reportedly accept a smaller offering if necessary to complete a public listing.

The report follows Blockchain.com's confidential submission of draft registration documents to the US Securities and Exchange Commission in May, a step that put the firm on a path toward a potential listing without disclosing the number of shares on offer or a target price range. Confidential filings under SEC rules allow issuers to keep financial details private while they work through the review process with regulators.

The timing reflects a broader reopening of capital markets for crypto companies. Bitcoin has gained more than 30% since mid-August, when the US Treasury announced it would significantly expand buybacks of long-dated government debt — a move that helped trigger a sharp rally across digital asset markets and improved the backdrop for equity issuance in the sector.

The recovery, however, remains uneven. Shares of recently listed crypto companies Gemini, BitGo and eToro are still trading down roughly 50% to 80% from their post-IPO highs, according to Bloomberg data cited in the report. That performance record presents a practical constraint on how aggressively Blockchain.com and its bankers can price the offering.

For Blockchain.com, a completed listing would provide public-market liquidity and a currency for acquisitions after a stretch in which the firm weathered both the 2022 market collapse and the failure of Three Arrows Capital, one of its institutional lending counterparties. It would also subject the company to quarterly disclosure requirements, audited financials and sustained investor scrutiny — a materially different operating regime from the private funding rounds that carried it to its prior $14 billion mark.

A $4 billion to $6 billion valuation implies significant dilution or markdown expectations for later-stage private investors who bought in near the top of the last cycle. The company's willingness to entertain a smaller raise signals that completing the listing, and securing the credibility that comes with an SEC-registered ticker, now ranks ahead of maximizing proceeds.

The offering also serves as a test of institutional demand for exposure to a combined exchange-and-wallet business model, which depends on both trading volumes and custody asset growth for revenue. With Gemini, BitGo and eToro all trading sharply below their listing highs, underwriters will be watching Blockchain.com's book-building process closely as an indicator of whether the crypto IPO window has genuinely reopened or remains conditional on continued market strength.

Blockchain.com has not confirmed the report. The final size, valuation and timing of the offering will depend on market conditions at the time the SEC review concludes and the company launches its roadshow.