The month of November witnessed a significant increase in the field of crypto venture capital, with VC funding reaching an unprecedented amount of 1.2 billion dollars.
This increase represents a leap of 179%, surpassing the $430 million mark in October, and marks a significant 90% increase compared to the $630 million recorded in the same period of the previous year. Let’s see all the details below.
Summary
November sees an extraordinary increase in VC funding in the crypto sector
A more in-depth analysis of the data provided by RootData reveals interesting dynamics in the investment landscape.
In November, in fact, 92 investment projects in the crypto sector were recorded, highlighting a 21% increase compared to the 76 projects in October.
However, this number represents a contraction of 17% compared to the 111 projects of the same month of the previous year.
The distribution of investments within the cryptocurrency market has shown remarkable trends, with infrastructure projects accounting for about 30% of total investments.
Following that, the DeFi initiatives have attracted about 13% of the total amount.
Among the significant financing events, Phoenix Group, based in Abu Dhabi and specialized in mining and custody services of Bitcoin, has successfully raised 370 million dollars through an IPO.
In addition, it has announced the expected listing on the Abu Dhabi Securities Exchange on December 5th.
In another significant move, Fnality, a blockchain payments company, announced a $95 million Series B funding, with notable participation from industry giants such as Goldman Sachs and BNP Paribas.
In addition, other important players such as DTCC, Euroclear, Nomura Securities, and WisdomTree have stood out in the landscape of significant investments.
In addition to these significant funding results, Bitfarms, a Canadian Bitcoin mining company, has announced the success of raising $44 million through a private placement.
This further confirmed the strong growth and investor confidence in the crypto venture capital sector in November 2023.
Goldman Sachs invests in Fnality International
As mentioned above, the famous investment bank Goldman Sachs recently participated in a financing round for the blockchain-based payment company, Fnality International.
The investment was part of the second round dedicated to the payment protocol, led by Goldman Sachs and with the key participation of the financial services company BNP Paribas.
According to Reuters, the company has announced that it has successfully raised £77.7 million, equivalent to $95.09 million, after the closing of the funding round.
Other relevant participants include Nomura, WisdomTree, and financial institutions DTCC and Euroclear.
Fnality has declared that it will allocate funds to implement the first global liquidity management network, unique in its kind, supporting new models of digital payment.
This template will be applicable for both wholesale financial markets and tokenized asset markets.
The company is recognized as a key player in providing cash chain solutions for wholesale banking through distributed ledgers, highlighting its prominent role in an ever-evolving industry.
With this recent round of funding, Fnality International has surpassed £130 million in total investments, further consolidating its position in the market.
Bitfarms’ investment for expanding Bitcoin mining capacity
The mining company Bitfarms has recently entered into an agreement to purchase 35,888 Bitcoin Antminer T21 mining devices from Bitmain, at a cost of $2,660 per unit.
The transaction, worth approximately $95.5 million, includes the delivery of the equipment between March and May 2024, with an additional option to purchase an additional 28,000 Antminer T21.
With the implementation of these new facilities, Bitfarms plans to increase the hashrate to 12 EH/s and achieve an installed capacity of 310 MW by the first half of 2024.
The projections indicate that by the end of the year, the hashrate should further increase, reaching 17 EH/s and 391 MW. This increase in hashrate is crucial for miners’ profitability, allowing them to mine Bitcoin more efficiently.
Jeff Morphy, president and CEO of Bitfarms, emphasized that the “attractive prices for equipment since 2020” have allowed the company to start a modernization program for its mining fleet, with the goal of improving energy efficiency to 23 W/TH.
In order to partially finance this important investment, Bitfarms will use 60 million Canadian dollars, equivalent to 44.1 million dollars, raised through a private placement of shares.
The Antminer T21, introduced by Bitmain in October, is designed for cryptocurrency mining, including Bitcoin, Bitcoin Cash, and Bitcoin SV, using the SHA-256 algorithm.
