Bluesky, a social media platform rivaling Elon Musk's X, is reportedly approaching a valuation of $700 million.
What Happened: Bluesky is nearing a $700 million valuation in a new funding round led by Bain Capital Ventures, reported Business Insider, citing three sources familiar with the deal.
The platform's interface resembles a simplified version of X, positioning itself as a safer, more idealistic alternative. Last year, Bluesky introduced several new features, such as hashtags, direct messaging, video sharing, and trending topics.
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The new funding will push Bluesky to find a profitable model. The platform currently operates without ads. In 2023, Bluesky stated its intention to avoid relying on advertising to support its business.
Why It Matters: The surge in Bluesky's user base is part of a broader trend of users migrating from X, formerly Twitter to alternative platforms, following Donald Trump's presidential victory.
Bluesky has seen its user base skyrocket from 3 million to 25.9 million in 2024.
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Its growth is also marked by the popularity of high-profile accounts, such as Rep. Alexandria Ocasio-Cortez (D-N.Y.), who became the first user to surpass 1 million followers on the platform.
This trend is also highlighted by the success of Meta Platforms Inc.'s (NASDAQ:META) Threads, which last month reached 100 million daily active users.
Looking ahead, Bluesky is planning to introduce a payment platform and subscription services, as noted by COO Rose Wang in a December interview.
This move aims to align the company's financial incentives with those of its users, creators, and developers, potentially providing a sustainable revenue model.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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