Venture Capitalists Gear Up for Digital Asset Expansion with New Funds and Mergers in 2024
Summary:
The article discusses the shift of venture capitalists towards digital assets in the upcoming bull market, with Blockchain Capital closing two new funds, totaling $580 million, for crypto gaming and decentralized finance projects. It explores the contenders for the acquisition of SVB Capital, the venture arm of the defunct Silicon Valley Bank, and highlights new Bitcoin-related investment products from traditional financial entities like Japan’s Nomura. The piece also details the planned merger of Canadian Bitcoin mining firm Hut 8 with US Bitcoin, the closing of two new venture capitalist funds by Blockchain Capital, and the introduction of Citigroup's private blockchain for cross-border payments and other financial solutions.
There are indications that venture capitalists are aligning their portfolios for a shift in 2024, with a growing trend towards digital assets in the forthcoming bull market. Blockchain Capital, for example, closed two new funds this week, accumulating $580 million in funding aimed at decentralized finance and crypto gaming ventures. On the same thread, notable contenders for the acquisition of SVB Capital, the venture branch of the now-defunct Silicon Valley Bank, include SkyBridge Capital, Atlas Merchant Capital, and Vector Capital. SVB Capital is recognized for its backing of major venture capitalists in the crypto world, including heavyweights like Sequoia and Andreessen Horowitz. In another development, Bitcoin-related investment products from traditional financial powerhouses are gaining traction. Nomura, the leading investment bank in Japan, through its subsidiary, Laser Digital, initiated a new Bitcoin (BTC) fund focusing on institutional investors to accommodate surging Bitcoin demand. Interestingly, newcomers are also drawing funds. Web3 startup Bastion announced a $25 million seed round to integrate Web3 infrastructure with enterprise technology. Andreessen Horowitz led the round, along with Laser Digital Ventures (Nomura’s crypto venture branch), Robot Ventures, Aptos Ventures, and Alchemy Ventures.
Details have emerged that SVB Financial Group is on the verge of striking a deal that will result in the sale of its venture capital branch, SVB Capital. The Wall Street Journal reports that leading the final bidding stages are SkyBridge Capital of Anthony Scaramucci and Atlas Merchant Capital, competing against Vector Capital of San Francisco. The potential sale price for SVB’s venture arm is estimated to be anywhere from $250 million and $500 million. However, being subject to the approval of the creditor’s committee, a firm sale is not warranted. SVB Capital is recognized for a broad spectrum of investments, including its backing of major venture capitalists like Sequoia and Andreessen Horowitz.
Bitcoin mining firm Hut 8 of Canada is primed to conclude its planned merger with US Bitcoin following the recent approval of the British Columbia Supreme Court. Upon merger, both firms will transform into a publicly traded US-based enterprise called Hut 8 Corporation or “New Hut.”
Venture capitalist Blockchain Capital just announced the closing of two new funds, accumulating $580 million, aimed at infrastructure, gaming, decentralized finance (DeFi), and consumer and social technologies. It's worth noting that although the company did not disclose specific projects, we can expect no investments in AI-related projects or hedging activities.
In a shift towards digital financial solutions, Citigroup now offers cross-border payments, liquidity and automated trade finance solutions via its private blockchain, Citi Token Services. It's been revealed that the Danish shipping company, Maersk and an undisclosed canal authority were part of pilot programmes aimed at reducing transaction times from days to minutes.
Published At
9/22/2023 9:00:00 PM
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