Crypto Venture Capital Surges 100% to $10 Billion in Q2

Crypto and blockchain venture capital experienced a significant resurgence in the second quarter, with startups collectively raising $10 billion. This surge in investment highlights the growing interest and confidence in the crypto space, particularly in Bitcoin (BTC). Venture capital firm Ego Death Capital, for instance, has launched a new $100 million fund dedicated to early-stage Bitcoin companies, emphasizing BTC as the foundation for secure decentralized finance.

Ego Death Capital's fund is backed by family offices and other investors, and the firm has already invested in various Bitcoin-focused ventures, including exchanges, payment platforms, and savings services. The timing of this fund is strategic, as institutional interest in Bitcoin is on the rise, driven by the availability of US spot ETFs and the trend of companies adding BTC to their corporate treasuries. However, not all analysts are convinced that this strategy is sustainable for businesses without a clear niche.

Meanwhile, Robinhood is intensifying its efforts in tokenization, despite facing scrutiny from European regulators. The company's tokenization-focused blockchain aims to offer over 200 US stock and ETF assets to European investors. This initiative has propelled Robinhood's stock to new heights. However, regulators are questioning the legitimacy of Robinhood's "private equity tokens," particularly those linked to OpenAI and SpaceX. The Bank of Lithuania has requested clarifications, as OpenAI has stated that the product does not provide actual private equity in the company. Robinhood CEO Vlad Tenev clarified that these tokens offer indirect exposure to the underlying companies rather than direct equity. Despite regulatory concerns, several private companies have shown interest in launching similar products through Robinhood.

In another significant development, CoreWeave has finalized an all-stock deal to acquire Bitcoin miner Core Scientific, valued at $9 billion. This acquisition will expand CoreWeave’s data center capacity, positioning it as a leader in AI and high-performance computing (HPC). The deal includes approximately 1.3 GW of gross power across Core Scientific’s national data center footprint, with an additional 1 GW of potential gross power available for expansion. However, CoreWeave has indicated that it may repurpose Core Scientific’s assets for HPC, potentially divesting its crypto mining operations.

In the realm of digital asset announcements, former Binance CEO Changpeng Zhao, commonly known as CZ, has raised questions about the legitimacy of The Open Network (TON)'s UAE Golden Visa program. TON announced that users could obtain a 10-year Golden Visa by staking $100,000 worth of TON coins and paying a $35,000 processing fee. CZ expressed skepticism on social media, noting the lack of official government statements supporting the claim. Less than a day later, UAE regulators issued a joint statement denying the reports, confirming CZ’s suspicions. The TON Foundation later clarified that the Golden Visa program is being developed independently and does not have official government backing.