SBF Comes to the Rescue
- This week was an interesting one in funding from both venture capital and debt financing. After the insolvency of the high-profile hedge fund, 3 Arrows Capital, several crypto lending giants, including BlockFi and Voyager who lent money to 3AC, were left with potential losses totaling hundreds of millions of dollars. This caused the widespread panic of contagion risks until FTX and Alameda Research (each of which are companies founded by Sam Bankman-Fried or “SBF”) stepped in to provide capital. FTX signed a term sheet this week with BlockFi for a $250M revolving line of credit, and Alameda entered into a $500M loan with Voyager consisting of $350M USDC and 15,250 BTC. These credit facilities are presumably to help the lending platforms stay afloat and have ample liquidity among customers withdrawing their funds. FTX also made moves on the M&A front, acquiring Canadian trading platform, Bitvo, and Embed Financial technologies, a stock clearing business. This demonstrates just how well-capitalized FTX and Alameda Research are in an industry where many companies are currently facing liquidity issues.
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WEEKLY RECAP Crypto funding rose 92% from $213 million to $410 million, one of the highest weekly totals in months. The majority of funding came from two deals: Monad’s $225 million round (DotW) and Auradine’s $80 million Series B round, the first mining deal of 2024. Auradine’s Teraflux family of Bitcoin ASIC miners has set new performance and energy efficiency benchmarks and has shown robust field performance, which has helped...
WEEKLY RECAP Funding fell 27% from $282 million last week to $206 million this week across 34 deals. Triple-digit funding seems to be the new normal, as there has been a notable uptick in the private market in recent weeks. Despite the overall increase in activity, there has been a lack of CeFi-related projects in recent weeks, with just one deal in each of the last two weeks. Agora was the singular...
WEEKLY RECAP Despite a short week in observance of Good Friday, weekly funding rose 17% from $228 million to $268 million across 31 deals. March funding totaled $960 million (with three days remaining), representing the highest figures since March ’23. Monthly deal count has reached 142 thus far, similarly marking the highest tally since 2022. Gaming companies had a strong week of funding, raising $114 million, being slightly edged out...
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