Last week, there were a total of 29 public financing events in the cryptocurrency market, raising approximately $334 million. | Investment and Financing Weekly Report
Bitcoin mining company Bitfarms agrees to acquire Stronghold Digital for $175 million; cryptocurrency payment network Skyfire completes $8.5 million seed round financing, with participation from Circle and others; decentralized AI network GenLayer developer YeagerAI completes $7.5 million seed round financing.整理：Luan Peng, RootData
According to incomplete statistics from RootData, during the period from August 19 to August 25, 2024, there were a total of 29 public financing events in the blockchain and cryptocurrency industry, with a total financing amount of approximately $334 million.
From the perspective of sector distribution, the projects that received financing are mainly concentrated in the infrastructure and DeFi sectors. Popular projects include the crypto hardware startup Fabric Cryptography, the on-chain private credit fund Credbull, the decentralized biotech protocol BIO Protocol, the modular data preprocessing project DIN, and the crypto lending platform Arch.
In addition, Layer1 intellectual property blockchain Story Protocol developer PIP Labs announced the completion of $80 million in Series B financing, led by a16z crypto, with participation from Polychain, Stability AI Senior Vice President and Board Member Scott Trowbridge, K11 founder Adrian Cheng, digital art collector Cozomo de'Medici, No Capital, and others.
*（List of projects with financing greater than $5 million last week, data source: * Rootdata）
1. Infrastructure
Bitcoin L2 project Ark Labs announced the completion of $2.5 million in Pre-Seed round financing, led by Tim Draper and Draper Ventures, with participation from Fulgur Ventures, Axiom Capital, and Bitcoin angel investor Stephen Cole. The new funds will be used for its development and to attract top talent.
It is reported that the Ark protocol is an open-source second-layer protocol designed to work with the Lightning protocol to enable fast, low-cost, and seamless payments in Bitcoin without compromising decentralization or self-custody.
Web3 oracle provider Stork Network has completed $4 million in seed round financing, led by Lightspeed Faction, with participation from Lattice, CMS, and Wintermute.
Stork Labs, a core contributor to Stork Network, is developing The Open Data Market, which connects data publishers with protocols, decentralized applications, and other data consumers through composite oracle services. Stork Perps is the company's first COS product.
According to Bitcoin Magazine, Miami-based Bitcoin Lightning Network payment startup TMRW announced the completion of $1.3 million in Pre-Seed round financing, led by Maple VC, with participation from angel investors including Brad Mills.
TMRW primarily leverages the speed and low cost of the Lightning Network and is built on the open payment standard Universal Money Addresses, enabling cross-border peer-to-peer payments through Lightspark and ZeroHash. The new funds are intended for expanding into the U.S. market, and TMRW has reportedly opened its iOS beta to U.S. users.
According to Decrypt, crypto payment network Skyfire has completed $8.5 million in seed round financing, with participation from Circle, Ripple, Gemini, and others.
Founded by two former Ripple developers, Skyfire is an open-source payment system that will allow autonomous AI agents to quickly move around the internet and purchase any goods needed to complete specified tasks—from data storage and creative assets to plane tickets and groceries. All transactions will be supported by the stablecoin USDC.
Skyfire currently operates on the Ethereum scaling network Polygon but has stated plans to expand to other blockchains soon. Skyfire is currently free to use but has indicated that it may soon charge transaction fees ranging from 2% to 3%.
Decentralized AI network GenLayer developer YeagerAI completes $7.5 million seed round financing
According to The Block, the developer behind the decentralized AI network GenLayer, YeagerAI, has completed $7.5 million in seed round financing, led by North Island Ventures, with participation from Node Capital, Arrington Capital, ZK Ventures, WAGMI Ventures, BlockBuilders, Arthur Hayes's family office Maelstrom, and several angel investors.
It is reported that the YeagerAI team is pioneering a technology solution called "smart contracts," a blockchain-based system that utilizes large language models connected to the internet to execute functions. GenLayer also employs AI in its custom delegated proof-of-stake algorithm, which randomly selects a chief validator to propose outputs, followed by voting from four other validators connected to different LLMs. If the subjective output receives majority support, the transaction is processed.
Binance Labs announces investment in Ethereum L2 network Corn
According to an official announcement, Binance Labs has announced an investment in Corn to simplify the use of Bitcoin in decentralized finance. Corn is an Ethereum L2 network focused on establishing a decentralized finance (DeFi) hub for Bitcoin.
Previously reported, Polychain Capital announced a $6.7 million investment in the Bitcoin-centric yield network Corn.
Crypto hardware startup Fabric Cryptography has completed $33 million in Series A financing, co-led by Blockchain Capital and 1kx, with participation from Offchain Labs, Polygon, and Matter Labs. The project had previously raised $6 million in a seed round led by Metaplanet.
The company stated that the new funds will be used to "build computing chips, software, and cryptographic algorithms." The core of Fabric's roadmap is to build a new processing unit called "Verifiable Processing Unit (VPU)" specifically designed for processing cryptographic technology.
2. DeFi
According to official news, the Bitcoin-native stablecoin project Ducat on Runes has completed $1.25 million in Pre-Seed round financing, led by UTXO Management, with participation from THE CMS, Bitcoin Frontier Fund, Revelo Intel, MARIN DIGITAL VENTURES, Samara Asset Group, Bitcoin Startup Lab, Bitflow, X+, and others.
Ducat addresses the centralization issues in the stablecoin market by providing a Bitcoin-native, self-custodial, and permissionless smart contract system, catering to Bitcoin holders' preferences for security and autonomy. The governance token DUCAT offers a stablecoin solution that merges Bitcoin's censorship resistance with decentralized native collateral.
According to The Block, the Bitcoin re-staking platform SatLayer based on Babylon has announced the completion of $8 million in Pre-Seed round financing, led by Hack VC and Castle Island Ventures, with participation from Franklin Templeton, OKX Ventures, Mirana Ventures, Amber Group, Big Brain Holdings, CMS Holdings, and others.
As the first Bitcoin re-staking platform built on Babylon, SatLayer allows users to re-stake their Bitcoin and mint Bitcoin liquid staking tokens based on Solv Protocol, Lombard, Bedrock, pStake, and PumpBTC to protect Bitcoin validation services (BVSs). SatLayer co-founder Luke Xie stated that there are no formal plans yet for a native token that may be launched in the future.
On-chain private credit fund Credbull completes $5.2 million financing, led by GnosisVC
According to Coindesk, the on-chain private credit fund Credbull has announced the completion of $5.2 million in financing. This round of financing was led by GnosisVC, with participation from Outlier Ventures, HODL Ventures, XBTO, LucidBlue Ventures, CryptoHedge, and Marcello Mari of SingularityDAO.
Credbull claims to be "the first licensed on-chain private credit fund protocol," launched in April this year on the Polygon PoS blockchain, aiming to democratize investments in real-world assets (RWA) in private credit by connecting traditional finance and Web3. The project's goal is to break down barriers between traditional finance and Web3, providing broader investor access to the private credit market.
Decentralized biotech protocol BIO Protocol has completed $11.81 million in financing
Decentralized biotech protocol BIO Protocol announced on August 20 that it has completed $6.22 million in the first round of Genesis auction financing, exceeding the original target of approximately $5 million.
Currently, investors participating in the first round of financing can start claiming $BIO tokens, of which 50% can be obtained immediately, and the remaining 50% will be unlocked linearly over one year (referred to as vBIO).
Notably, the financing amount for BIO accounts for more than half of the total public sales in August this year ($11.81 million), and BIO Protocol has also stated plans to launch a new round of financing.
According to The Block, the Base ecosystem DeFi derivatives protocol BSX has raised $6.2 million in its seed and Pre-seed rounds. The seed round financing amount was $4 million, led by Blockchain Capital.
Investors in both rounds of financing include Bankless Ventures, No Limit Holdings, Cadenza Ventures, Breed VC, and Arthur Hayes's family office Maelstrom. Its angel investors include Zach Segal, the listing director at Coinbase, Tommy Shaughnessy, founder of Delphi, and Isaiah Washington, an investor at CoinFund.
Crypto startup Sorella Labs completes $7.5 million seed round financing, led by Paradigm
According to The Block, crypto startup Sorella Labs, aimed at addressing Ethereum MEV issues, has completed $7.5 million in seed round financing, led by Paradigm, with participation from Uniswap Ventures, Bankless Ventures, Robot Ventures, and Nascent.
To curb MEV attacks, Sorella Labs is developing two tools, Brontes and Angstrom, with Brontes already launched today, and Angstrom expected to be released later this year after the mainnet launch of Uniswap V4.
3. AI
Decentralized AI network GenLayer developer YeagerAI completes $7.5 million seed round financing
According to The Block, the developer behind the decentralized AI network GenLayer, YeagerAI, has completed $7.5 million in seed round financing, led by North Island Ventures, with participation from Node Capital, Arrington Capital, ZK Ventures, WAGMI Ventures, BlockBuilders, Arthur Hayes's family office Maelstrom, and several angel investors.
It is reported that the YeagerAI team is pioneering a technology solution called "smart contracts," a blockchain-based system that utilizes large language models connected to the internet to execute functions. GenLayer also employs AI in its custom delegated proof-of-stake algorithm, which randomly selects a chief validator to propose outputs, followed by voting from four other validators connected to different LLMs. If the subjective output receives majority support, the transaction is processed.
Modular data preprocessing project DIN has completed $4 million in financing, with participation from Manta, Moonbeam, Ankr, Maxx Capital, and others, bringing its total financing amount to $8 million.
It is reported that DIN officially launched Chipper node sales on August 13.
Additionally, the Web3 asset data platform RootData shows that DIN is a data intelligence network providing a set of AI-native digital asset tools and real-time data infrastructure. The network will enable users to produce various AI-native digital assets, including trading information streams, trading strategies, trading support bots, entertainment, education, and social intelligent assistants.
4. Gaming
The blockchain fantasy sports platform Fanton Fantasy Football, based on the Telegram ecosystem, announced the completion of $1 million in seed round financing, with participation from Animoca Brands, Delphi Ventures, and Kenetic Capital. Hashkey x TON Accelerator, PAKA Fund, and Sign VC also participated, with specific valuation information not disclosed.
Fanton currently primarily attracts users through its fantasy sports platform in the TON ecosystem, providing financial incentives and rewards supported by blockchain technology. The new funds are intended for further expansion in the GameFi and blockchain sports sectors.
Web3 game development company Nexus Interactive announced on platform X that it has completed $2 million in oversubscribed seed round financing, with participation from Animoca Brands, Jump Crypto, Maven Capital, GameFi ventures, Sky Vision Capital, Aquanow, OIG (Oracles Investment Group), Virtuals IO, Atesis Capital, Enzac Research, Avocado Guild, Good Games Guild, RR2 capital, and others.
Currently, Nexus Interactive has three infrastructures: an in-house development studio Nexus Play, Web3 game publishing service Nexus Build, and content and community growth project Nexus Share. Its flagship game Everdawn Champions is set to launch its public beta in September this year.
5. Others
Web3 security and transparency platform g8keep announced the completion of $1.25 million in financing, with participation from Robot Ventures, Base Ecosystem Fund, cygaar, devops199fan, and others.
The new funds will be used to expand its security transparency platform to address flaws in token issuance and trading, including correcting vulnerabilities exposed to users and ensuring a secure and reliable digital asset usage environment for users.
Crypto lending platform Arch completes $5 million seed round financing
According to Fortune, crypto lending platform Arch announced the completion of $5 million in seed round financing, co-led by Morgan Creek Digital and Castle Island Ventures. At the same time, Galaxy provided $70 million in debt financing. This funding will be used to serve institutional clients and individual investors.
Arch was founded in February 2022 by financial industry veterans Dhruv Patel and Himanshu Sahay, aiming to revitalize the crypto lending industry, which has been impacted by the collapse of companies like BlockFi and Genesis.
Max Bareiss, Vice President of Galaxy's lending division, revealed plans to securitize the debt financing, allowing institutional investors to purchase and trade it through crypto-native channels in the secondary market. Arch currently has five full-time employees and plans to expand its team and launch additional investment products later this year.
Bitcoin mining company Bitfarms agrees to acquire Stronghold Digital for $175 million
According to CoinDesk, Bitcoin mining company Bitfarms has stated that it has agreed to acquire competitor Stronghold Digital (SDIG) for $175 million.
Bitfarms stated in a statement that the offer includes exchanging each share of Stronghold stock for 2.52 shares of Bitfarms stock, representing a 71% premium over Stronghold's 90-day volume-weighted average price on Nasdaq as of August 16. Stronghold indicated in May that it was exploring strategic alternatives, including the sale of the company.
Previously reported, Bloomberg cited sources saying that Bitcoin mining company Bitfarms is negotiating to acquire Stronghold Digital Mining Inc. for approximately $164 million while also fending off acquisition attempts from Riot Platforms Inc.
Layer1 intellectual property blockchain Story Protocol developer PIP Labs announced the completion of $80 million in Series B financing, led by a16z crypto, with participation from Polychain, Stability AI Senior Vice President and Board Member Scott Trowbridge, K11 founder Adrian Cheng, digital art collector Cozomo de'Medici, No Capital, and others. The new round of financing brings PIP Labs' total financing to $140 million.
Additionally, Techcrunch reported that sources revealed that the post-financing valuation of Story Protocol's developer PIP Labs is currently $2.25 billion.
Story Protocol is an intellectual property blockchain aimed at tokenizing trillions of dollars in intellectual property assets, unlocking the limitless creativity of programmable IP+AI. Currently, the number of IPs on the Story Protocol blockchain has surpassed 20 million, with over 200 teams building applications in IPFi, AI, and consumer markets.
ZK verification solution zkMe completes $4 million seed round investment, led by Multicoin Capital
According to official news, zero-knowledge proof identity verification solution provider zkMe announced the completion of $4 million in seed round investment, led by Multicoin Capital, with participation from OKX Ventures and Robot Ventures. This funding will be used to optimize the zkMe zero-knowledge identity protocol, which has been live for 13 months, and to develop zero-knowledge identity layer infrastructure to build a more complete zkMe privacy identity layer network, expected to be officially launched in Q4 2024.
It is reported that zkMe is committed to providing decentralized compliance services that meet FATF standards through cryptography, offering comprehensive credential verification solutions for the Web3 industry to address the upcoming EU MiCA regulations. At the same time, zkMe empowers users to have control over identity credentials, allowing for maximum privacy protection and value creation through participation in verification.
