The crypto venture capital (VC) activity witnessed a notable shift in June.
RootData shows 92 publicly disclosed crypto venture capital investments, a 40% drop from May’s 153. Total fundraising hit $697 million, down 30% from last month’s $990 million.
Crypto VC Investments Decline in June
Venture capital activity is often used to gauge major investors’ confidence and interest in the crypto market. Recent data suggests a cooling period following a particularly dynamic May, yet it maintains a positive growth trajectory when viewed year over year.
As mentioned, 92 publicly disclosed Crypto VC investment projects marked a 40% decline from May’s 153 projects. However, this figure represents a slight increase compared to the 87 projects recorded in June 2023.
The total fundraising amount in June was $697 million, reflecting a 30% decrease from the $990 million raised in May 2024. Despite this month-on-month drop, the June 2024 total still showed a 42% increase from the $480 million reported in June 2023.
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The fluctuations in funding volumes indicate a maturing market where strategic investments are becoming more selective amidst broader economic factors. Along with changes in funding amounts, the distribution of assets across sectors is also shifting, showing new priorities and trends.
Despite the growing narrative around real-world assets (RWA) and decentralized physical infrastructure networks (DePIN), these sectors secured only 6% of the total investments. DeFi led with approximately 20%, followed by NFT/GameFi at 18%.
Investments in L1/L2 accounted for 11%, while tools and wallets captured 8%. AI received around 9%, and CeFi saw the lowest at about 4%. It is important to note that these figures do not include merger and acquisition deals.
Bitstamp’s $200 Million Acquisition Takes Center Stage
The most notable venture capital investment of June was Robinhood’s acquisition of Bitstamp. This deal will strengthen Robinhood’s crypto services by integrating Bitstamp’s 50 active licenses and registrations worldwide. Robinhood will also enter the institutional space with ready-made relationships, infrastructure, and products.
“As the world’s longest-running cryptocurrency exchange, Bitstamp is known as one of the most trusted and transparent crypto platforms worldwide. Bringing Bitstamp’s platform and expertise into Robinhood’s ecosystem will give users an enhanced trading experience with a continuing commitment to compliance, security, and customer-centricity,” Bitstamp CEO JB Graftieaux stated.
The acquisition, which requires customary closing conditions, including regulatory approvals, is expected to be finalized in the first half of 2025. Barclays Capital Inc. acted as Robinhood’s exclusive financial advisor, while Galaxy Digital Partners LLC advised Bitstamp.
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Following Bitstamp, GRIID secured a $155 million M&A deal, and Hut 8 obtained $150 million in strategic funding, both in the mining sector. CleanSpark announced it would acquire GRIID through an all-stock transaction valued at $155 million, including payments and assumed debt. The company also entered an exclusive hosting agreement, allocating 20 megawatts of power.
Hut 8, for its part, received a $150 million investment from Coatue to develop an AI infrastructure platform. This funding will be provided through convertible notes with an 8% annual interest rate and an initial term of five years, with options to extend for up to three more years. Hut 8’s pivot towards AI is not unexpected, as BeInCrypto previously reported that following the latest Bitcoin halving, many miners are seeking new revenue streams.
Other major investments included the modular blockchain project Avail and the rollup deployment platform Conduit, which raised $43 million and $37 million, respectively. Smaller rounds were seen across various sectors, such as DeFi, AI, NFT, and GameFi, with companies like M^0, Ora, and Sandbox securing $20 million each.
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