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The Top 3 Investors in Blockchain Technology

3 min read · 147 views Chris Smith Oct 28, 2022

The blockchain industry is forecasted to reach a valuation of $67.4 billion by 2026.[1] There are many companies making serious investments in the space, and we’ve compiled a list of the largest movers of capital. This article will introduce you to three global blockchain technology investors who have invested over $3.7 billion.

 

Our marketing agency, Business in Games, works with blockchain companies worldwide that offer products and services from video games to sports and NFTs (non-fungible tokens). Anecdotally, we saw unprecedented growth in marketing spending and contractual interest over the recent ‘crypto boom’. Although there has been a market slowdown and some budgets have been reduced, we are still seeing interest towards new projects from the investment community.

 

#1 Alphabet Inc.

Major Investments: 4

Funding Amount: $1.5 billion

 

Who is Alphabet Inc?

Alphabet Inc. is an American conglomerate holding company established by Google. Their revenue was $257.6 billion in the last financial year (2021/2022). Alphabet Inc. acts as a parent company with 12 subsidiaries, including DeepMind (artificial intelligence), Google Fibre (internet access), Isomorphic Labs (drug discovery), Intrinsic (robotics software), Waymo (autonomous driving), and Calico (anti-aging research).

 

Alphabet Inc’s Blockchain Investments: 

1. Fireblocks (Valued at $8 billion) [2]

Fireblocks is a blockchain security service provider that provides an easy-to-use digital asset security platform to help financial institutions protect their digital assets from theft or hackers using MPC (multi-party computation), and patent-pending chip isolation technology. 

 

2. Dapper Labs (Valued at $7.5 billion) [3]

Dapper Labs is an NFT marketplace developer, best known for creating the NBA Top Shot Marketplace, NFT All Day, UDC Strike, and CryptoKitties.

3. Voltage (Company value is not public)

Voltage is a crypto infrastructure technology company exclusively focused on Bitcoin. They provide infrastructure solutions to their clients including nodes (enterprise-grade hosting), BTCPay servers (quick and easy Bitcoin and Lightning payment solutions), flows (ability to access liquidity using a dashboard and API or application programming interface), and surge (analysis and forecasting software).

4. Digital Currency Group (Valued at $10 billion) [4]

Digital Currency Group is the parent company for several big companies in the crypto industry. Their subsidiaries include Grayscale Investments (world’s biggest digital asset manager) and Grayscale Bitcoin Trust (the largest fund for Bitcoin in the world).

 

#2 BlackRock

Major Investments: 3

Funding Amount: $1.17 billion

 

Who is BlackRock?

BlackRock Inc. is an American multi-national investment firm providing investment, advisory, and risk management solutions with $19.17 billion in revenue in the last financial year (2021/2022).

 

BlackRock’s Blockchain Investments: 
1. Circle (Valued at $9 billion) [5]

Circle is a peer-to-peer payment technology company and the issuer of the USDC stablecoin, with $55 billion in circulation. Partners of Circle include VISA, Mastercard, MoneyGram, and BNY Mellon.


2. FTX (Valued at $32 billion) [6]

FTX is a cryptocurrency exchange based in the Bahamas. In 2021, FTX reported $1.02 billion in revenue. Their platform offers derivatives, options, volatility products, and tokens. In 2022, the FTX exchange had over one million users. 

3. Anchorage Digital (Valued at $3 billion) [7]

Anchorage Digital is a cryptocurrency platform and infrastructure service that provides investment and infrastructure support for cryptocurrency and cryptocurrency products. In 2021, the company was valued at just above $3 billion after a $350 million funding round. Investors include Andreessen Horowitz, Singapore Sovereign Wealth Fund GIC, Goldman Sachs, KKR, and VISA.

 

#3 Morgan Stanley

Major Investments: 2

Funding Amount: $1.11 billion

 

Who is Morgan Stanley?

Morgan Stanley is a global financial services company that provides investment, banking, securities, wealth management, and investment management services. They have a global footprint of 78,000 employees and in the last financial year generated $59.58 billion.

 

Morgan Stanley’s Blockchain Investments: 

1. Figment (Valued at $1.4 billion)

Figment is a blockchain infrastructure provider and crypto staking platform. Figment is known for developing back-end systems and infrastructure that provides yield on tokens for the PoS (proof-of-stake) blockchains.
 
2. New York Digital Investment Group LLC (Valued at $7 billion)

NYDIG is an investment management firm. The company offers asset management, custody, and execution solutions and services for digital assets. The estimated annual revenue is currently $49.9 million. NYDIG also serves as the official Bitcoin Payroll Platform for the New York Yankees.

 

If you’re looking for more information on the major movers in the market, here’s an infographic developed by Business in Games.

 

 Source: Business in Games

 

If you would like to follow the market movements in blockchain, video games, and esports, sign up for our weekly BIG Report newsletter or follow our daily content on LinkedIn.

 

In summary, now you’re aware of the largest capital investments in the industry from companies you may have never suspected. While we can’t provide you with solid data on where the industry is moving, we can give you our personal insights and experiences with active marketing contacts in the space. The crypto investment market may have slowed, but every capital and marketing-heavy market has also slowed with it. We will watch this space closely for future developments.

 

For a full list of MTVR holdings, please click here.

 


1) “Blockchain Market by Component (Platforms and Services), Provider (Application, Middleware, and Infrastructure), Type (Private, Public, and Hybrid), Organization Size, Application Area, and Region (2022-2026),” Markets and Markets, Nov. 2021
2) Ossinger, Joanna. “Crypto Startup Backed by Google Fund Hits $8 Billion Valuation,” Bloomberg, Jan. 27, 2022
3) “The 2022 CNBC Disruptor 50 list: Meet the next generation of Silicon Valley,” CNBC, May 17, 2022
4) Rooney, Kate. “Grayscale-parent Digital Currency Group tops $10 billion valuation with SoftBank, Alphabet investments,” CNBC, Nov. 1, 2021
5) Nishant, Niket. “Cryptocurrency firm Circle doubles valuation to $9 bln in tweaked SPAC deal,” Reuters, Feb. 18, 2022
6) Rooney, Kate. “FTX in talks to raise up to $1 billion at valuation of about $32 billion, in-line with prior round,” CNBC, Sep. 21, 2022
7) Dillet, Romain. “FTX in talks to raise up to $1 billion at valuation of about $32 billion, in-line with prior round,” TechCrunch, Dec. 15, 2021


 

Chris Smith

Founder | Contributing Writer

chris@bigesports.gg

A 12-year veteran in the games, esports, and influencer industry, Chris is the founder of Business in Games – a strategic, consultancy and marketing business. Chris has experience working on campaigns with brands such as Fox Sports, Intel, NVIDIA, Corsair, and many more. His company has run gamer-based marketing for over a dozen crypto projects, intersecting the gaming industry.

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Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 855-425-7426 or visit our website at www.fountetfs.com. Read the prospectus or summary prospectus carefully before investing.

Exchange Traded Concepts, LLC. serves as the investment advisor to the Funds. The Funds are distributed by SEI Investments Distribution Co., (SIDCO) 1 Freedom Valley Drive, Oaks, PA 19456. SIDCO is not affiliated with Exchange Traded Concepts, LLC. or Fount Investment Co. Ltd.

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Investing involves risk, including possible loss of principal. There is no guarantee the Funds will achieve their stated objectives. In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles, or social, economic, or political instability in other nations. Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume. 

 

The Funds’ concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors. For MTVR, the Fund may be concentrated in the entertainment and interactive media & services industries. The entertainment industry is highly competitive and relies on consumer spending and the availability of disposable income for success, which may cause the prices of the securities of companies to fluctuate widely. The prices of the securities of companies in the interactive media & services industry are closely tied to the overall economy's performance. Changes in general economic growth, consumer confidence, and consumer spending may affect them. MTVR may also be subject to the specific risks associated with metaverse companies. These risks include but are not limited to small or limited markets, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. Smaller, start-up companies tend to be more volatile than securities of companies that do not rely heavily on technology. Metaverse Companies may rely on a combination of patents, copyrights, trademarks, and trade secret laws to establish and protect their proprietary rights. There can be no assurance that these steps will be adequate to prevent the misappropriation of their technology or that competitors will not develop technologies that are equivalent or superior to such companies’ technology.

 

For SUBS, the Fund may be concentrated in the software industry. Technological changes, pricing, retaining skilled employees, changes in demand, research & development, and product obsolescence can affect the profitability of software companies causing fluctuations in the market price of company securities. 

 

Both Funds are subject to communication services sector risk, which can involve the same risks as being concentrated in the software industry. Network security breaches, potential proprietary or consumer information theft, or service disruption can negatively affect companies’ stock prices.

 

The Funds are non-diversified. The Funds are new and have limited operating histories for investors to evaluate. New and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. 

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