Cryptocurrency venture capital (VC) activity witnessed notable changes in June.
There were 92 publicly disclosed cryptocurrency venture capital investments, down 40% from 153 in May, according to Root Data. Total raised was $697 million, down 30% from last month's $990 million.
Decrease in cryptocurrency venture capital investment in June
Venture capital activity is often used to gauge the confidence and interest of major investors in the cryptocurrency market. Recent data shows a cooling off following a particularly dynamic May, but the growth trajectory remains positive on a year-over-year basis.
As previously mentioned, there were 92 publicly disclosed cryptocurrency VC investment projects, down 40% from 153 projects in May. However, this is a slight increase compared to the 87 projects recorded in June 2023.
Total fundraising in June was $697 million, a 30% decrease compared to $990 million raised in May 2024. Despite this month-over-month decline, total fundraising in June 2024 increased 42% compared to the $480 million reported in June 2023.
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Fluctuations in funding amounts indicate a maturing market where strategic investments are being made more selectively amid broader economic factors. Along with changes in funding amounts, asset distribution by sector is also changing, showing new priorities and trends.
Despite growing interest in real assets (RWA) and decentralized physical infrastructure networks (DePIN) , these sectors have secured only 6% of total investment. DeFi followed at about 20%, followed by NFT/GameFire at 18%.
Investments in L1/L2 accounted for 11%, and tools and wallets accounted for 8%. AI accounted for about 9%, while CeFi had the lowest figure at about 4%. Please note that these figures do not include merger and acquisition transactions.
Bitstamp's $200 million acquisition attracts attention
The most notable venture capital investment in June was Robinhood's acquisition of Bitstamp . The acquisition will strengthen Robinhood's cryptocurrency offerings by consolidating Bitstamp's 50 licenses and registrations around the world. Additionally, Robinhood will enter the institutional market with relationships, infrastructure, and products already in place.
“As the world’s longest-running cryptocurrency exchange, Bitstamp is known as one of the most trusted and transparent cryptocurrency platforms in the world. Bringing Bitstamp’s platform and expertise to Robinhood’s ecosystem will allow us to deliver an enhanced trading experience for our users through our continued commitment to compliance, security, and customer focus,” said JB Graftieaux, CEO of Bitstamp.
The acquisition, which is subject to customary closing conditions, including regulatory approvals, is expected to close in the first half of 2025. Barclays Capital served as exclusive financial advisor to Robinhood, and Galaxy Digital Partners LLC advised Bitstamp.
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Following Bitstamp, GRID signed a $155 million M&A deal, and Hut 8 secured $150 million in strategic funding in the mining sector. CleanSpark announced that it would acquire Grid in an all-stock transaction valued at $155 million, including payments and acquisition debt. It also signed an exclusive hosting agreement allocating 20 megawatts of power.
Meanwhile, Hut 8 received $150 million in investment from Coatue to develop its AI infrastructure platform. The funding will be provided through convertible notes with an interest rate of 8% per annum, an initial maturity of five years, and an option to extend for up to a further three years. Hut 8's shift to AI is not surprising, as BeInCrypto reported that many miners are looking for new revenue streams following the recent Bitcoin halving.
Other major investments include modular blockchain project Available and roll-up deployment platform Conduit, which raised $43 million and $37 million respectively. Small rounds were held in various fields such as DeFi, AI, NFT, and GameFi, and companies such as M^0, Aura, and Sandbox secured $20 million each.
