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 Weekly funding fell from $152 million to $125 million across 23 deals compared to last week’s 31. The largest deal of the week was a $47 million strategic round completed by Securitize, notably led by BlackRock and making CeFi the leading fundraising category this week. As one of the largest asset managers in the world, the investment carries significant weight in legitimizing the tokenization sector. BlackRock used Securitize...
WEEKLY RECAP Crypto funding was relatively unchanged week-over-week, with a 4% decrease to $138 million, while deal count saw a larger decrease, falling 29% to 25 deals. Infrastructure deals comprised 73% of total funding and Web3 and Gaming combined for 26%, with remaining categories making up the last 1%. As highlighted in our Q1 Funding Report, Series A funding has been a standout deal stage this year, and this week...
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...
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