Crypto and blockchain venture capital experienced a strong resurgence in the second quarter, with early-stage startups collectively raising approximately $10 billion.
Recap: VC in Q2 Crypto & Highlights
Against this backdrop of overall crypto VC spending, specialist fund Ego Death Capital announced a significant new investment focus on pure Bitcoin companies. The $100 million fund aims to back early-stage ventures within the Bitcoin ecosystem.
Meanwhile, Robinhood’s stock climbed following announcements about its tokenization strategy. However, the company faces regulatory scrutiny regarding certain private equity token offerings. Separately, CoreWeave finalized a major acquisition of Core Scientific. Cryptocurrency’s central figure, Binance CEO Changpeng Zhao (CZ), voiced strong skepticism towards a recent TON Foundation immigration program proposal.
Ego Death Capital targets Bitcoin startups
Specialized venture capital firm Ego Death Capital has launched a $100 million Bitcoin-focused fund, stating “BTC [the] only decentralized and secure base […] to build on.” Investors include family offices.
The fund already holds stakes in Bitcoin exchanges, payment processors, and savings applications. Its strategy now involves backing companies with annual revenue between $1 million and $3 million.
This initiative aligns with a broader surge in institutional interest in Bitcoin, fueled by the launch of US spot exchange-traded funds (ETFs) and corporate treasury additions. Following Ego Death Capital’s lead, numerous companies (as highlighted by data provider Glassnode) added Bitcoin to their balance sheets this year.
Nevertheless, some analysts question the long-term viability of Bitcoin solely as a treasury investment for companies lacking a distinct competitive advantage in the crypto space.
Robinhood stock surges on tokenization push, but regulators have questions
Robinhood stock prices significantly increased after the company detailed its plan for on-chain tokenization of over 200 US-listed stocks and ETFs, targeted initially at European investors.
This development is being closely examined by European regulators. The Bank of Lithuania expressed concerns, requesting “clarifications” following OpenAI’s clarification that the products offered by Robinhood involving OpenAI and SpaceX do not constitute actual private equity investments but provide indirect exposure.
Robinhood CEO Vlad Tenev justified the approach, citing shareholder value catalysts. Despite the regulatory uncertainty surrounding its private equity tokens, Tenev reported increased interest, with multiple other private companies exploring similar tokenization strategies through Robinhood.
CoreWeave acquires Core Scientific in all-stock deal
CoreWeave has completed its year-and-a-half-long acquisition attempt for Bitcoin miner Core Scientific in an all-stock transaction valued at an estimated $9 billion. The deal aims to strengthen CoreWeave’s data center infrastructure to solidify its position in the high-performance computing (HPC) and AI sectors.
CoreWeave anticipates owning roughly 1.3 gigawatts (GW) of gross power capacity from Core Scientific’s existing data centers, with potential for additional 1 GW or more in expansionary projects.
Crucially, the acquisition hints at a potential pivot away from cryptocurrency mining. CoreWeave intends to repurpose Core Scientific’s sites, which house crypto mining equipment, for its broader HPC goals, including server hosting for AI and computational clients. Divestment of the associated crypto mining operations appears likely in this strategic re-alignment.
“Is this real?” CZ questions TON’s UAE Golden Visa announcement
On the weekend after the launch of The Open Network Foundation’s (TON Foundation) Golden Visa immigration program in the UAE – promising 10-year stays for staking large amounts of TON coins – Changpeng Zhao voiced immediate reservations.
Directing his skepticism via social media, CZ queried, “Is this real?” specifically citing the lack of official government support for the program.
His doubts proved accurate the very next day, when UAE regulators repudiated the idea. The UAE Capital Market Authority (CMA) and Telecom Regulatory Authority (TRA) issued a joint statement denying any connection between Golden Visas and digital asset activities, reinforcing CZ’s demand for verification.
The TON Foundation subsequently attempted damage control, stating the program was being developed independently, but acknowledged it did not have official endorsement from the UAE government.
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