By
Mayowa Adebajo
February 14th, 2024
Fireblocks’ revenue report suggests that investors and institutions may not be dabbling into crypto as a quick money venture anymore.
In what is a rare feat among software-as-a-service (SaaS) providers, New York-based blockchain security service provider Fireblocks has reportedly made over $100 million in Annual Recurring Revenue (ARR). The company announced the achievement on Monday, barely three years after its first product was launched into the market.
While that huge amount is for the year running alone, it shows an interesting conflict of interest between crypto and investors. Usually, during bear markets, investors expectedly lose interest in crypto. But while that may be true, overall interest in the crypto space has not dwindled one bit. Matter of fact, it might be on the rise as suggested by Fireblocks’ $100 million ARR.
Key Points from Fireblocks ARR
Firstly, ARR refers to the amount of recurring revenue that a company makes off of subscriptions. And given that Fireblocks is just about 4 years old, the achievement places it in the same league as Slack and Twilio. These duo also reached a $100 million valuation in less than five years, becoming SaaS centaurs themselves.
Another takeaway from the ARR report is that there is now an incredible amount of interest in decentralized finance (DeFi), blockchain and Web3 technologies. Hence, the increased revenue. Speaking about that, Fireblocks co-founder and CEO Michael Shaulov said:
“Fintechs, Web3 start-ups, banks and payment service providers are diligently bringing new digital asset products to market.”
Meanwhile, Fireblocks’ revenue report comes amid an ongoing bear market so one might wonder how this is possible. Apparently, there has been a change in the mindset of investors, regarding crypto. That is, investors and institutions alike are not dabbling into crypto as a quick money venture anymore. Rather, they are exploring more use cases for crypto, even as adoption also keeps growing at an unprecedented rate.
It is also worth mentioning that Fireblocks did not achieve the $100 million in revenue for 2022 in isolation. The company had help from consumer brands, gaming companies, and some crypto start-ups. And as the company says, more than 1,500 organizations deployed their technology in 2022 to protect customer and investor funds.