Analysts reveal who has invested most in blockchain start-ups recently
Google’s parent company Alphabet has invested more than any other public company in blockchain projects, with a total of $1.5 billion invested between September 2021 and June 2022. However, Alphabet is not the only player in the cryptocurrency venture capital space. According to Blockdata analysts, there are at least a few other major companies, funds, and banks that invest more than $100 million in blockchain projects. Here’s more on what’s going on.
It should be noted that these statistics should not be confused with investments directly in Bitcoin by companies such as Tesla or MicroStrategy. The aforementioned giants previously bought crypto directly, while Alphabet invests in cryptostartups while not owning digital assets.
It should be noted that MicroStrategy remains the leader in Bitcoin savings among public companies. It has 129,698 BTC in which it has invested $3.97 billion.
Ranking of public companies that own bitcoins
That said, the company is now down 23.31 per cent on this position. Accordingly, unrealised losses are currently equivalent to approximately $926 million.
Chart of bitcoin purchases by MicroStrategy
Big investments in blockchain
According to Cointelegraph’s sources, Alphabet is most interested in four crypto projects: custodial platform Fireblocks, Web3 startup Dapper Labs, a Bitcoin infrastructure service called Vultage and venture capital fund Digital Currency Group. Alphabet invested in 17 blockchain projects at once until September 2021. However, this was for a much smaller amount of $601.4 million.
In total, the top 40 public companies by volume of investment in crypto startups invested about $6 billion in the aforementioned period, i.e., from September to June. That figure is up significantly from January to September 2021, when a total of $1.9 billion was invested in blockchain projects. The full year 2020 figures are even more modest, with only $506 million invested by all institutional investors.
Ranking of largest investments in blockchain projects
As you can see from the table above, even banks are largely interested in blockchain investments. Morgan Stanley, Goldman Sachs, Citi, Wells Fargo, Commonwealth Bank and BNY Mellon can be found on the list. Another interesting detail is that technology giant Samsung has formed the most diversified portfolio of crypto startups, as it has at least 13 projects.
Read also: Analysts reveal what the rise of short-term Bitcoin investors means for cryptocurrency.
While the figure of $6 billion in investments seems impressive, the crypto market has still not become a major trend among big investors on Wall Street. In particular, former Goldman Sachs asset manager John Haar knows the explanation for this trend: according to him, many financiers allegedly lack a basic understanding of the basic concepts of the crypto market. Haar described his point of view in an essay for private clients of the Swan Bitcoin brokerage platform.
According to the expert, representatives of the traditional finance sector not only fail to understand Bitcoin, but also fail to articulate the concept of “hard currency” properly. Here’s his rejoinder.
After many conversations, I can say that if there are people in traditional finance who have a well-developed position on why Bitcoin is not a good form of money or why Bitcoin will not be successful, I could not find them.
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Haar also noted that he himself became interested in Bitcoin in 2017 after the hype surrounding the previous bullrun of the crypto market. Unfortunately, there are very few such enthusiasts among Wall Street financiers so far, because they are either unwilling or unable to come to an understanding of cryptocurrency at all. The expert continues.
Far more often, a person will simply pretend to have a good understanding of a given topic and hold a strong opinion regardless of their knowledge. This is especially true in the field of investments.
Overall, Alphabet and other public companies have seen the volume of investment in blockchain projects grow in one way or another from year to year. This trend could change Wall Street’s view of crypto to the point where financiers simply have no choice but to accept the new reality of crypto’s dominance in investment.
We think the attention of giants like Alphabet to the blockchain industry is a good sign. It makes it clear that large companies with top analysts have already considered the potential of distributed ledger technology and are willing to invest in them. And this is true even in the current period, when markets have collapsed and users of various blockchain projects have become significantly fewer. Accordingly, investors are looking at the long term and are not hiding it.
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