From political power plays to bold Bitcoin bets: A deep dive into this week’s major industry deals
Posted: Aug 9, 2024 9:24 AM Updated: Aug 9, 2024 9:24 AM
Edit and fact check: August 9, 2024, 9:24 AM
Briefly
Cryptocurrencies and blockchain technology are expanding their influence across multiple sectors, with political donations and corporations using cryptocurrencies as financial assets. The sector is expanding its influence even further with the development of infrastructure and decentralized protocols.
This week’s investment deals and partnerships demonstrate the growing influence of cryptocurrencies and blockchain technology across a range of sectors. In particular, political donations from crypto-focused PACs have targeted key U.S. primaries, indicating the industry’s desire to shape favorable regulations. Meanwhile, companies like Metaplanet and OneMedNet are increasing their Bitcoin holdings, indicating a trend toward using cryptocurrencies as treasury assets.
Additionally, advancements in blockchain infrastructure and decentralized internet protocols, as well as strategic collaborations such as Bitstamp’s partnership with Stripe, demonstrate the growing influence of this sector in both technology and finance.
Crypto PAC Invests $4 Million in Candidates in August 6 Primary Election
Fairshake Super PAC and its allies have donated about $4 million to support and oppose candidates in the upcoming primary elections in Michigan, Washington, and Missouri. The PAC focuses on campaigns for the U.S. House and Senate, supporting politicians who support cryptocurrencies and opposing those who are perceived as anti-industry.
Fairshake invested $1.4 million in Missouri’s 1st District to challenge Democratic incumbent Cori Bush. In Missouri’s 3rd District, Republican Bob Onder received more than $250,000 from Defend American Jobs PAC. In Michigan’s 13th District, Protect Progress contributed $1 million to Democrat Shri Thanedar’s campaign and $1.5 million to Emily Randall’s campaign.
The recent Arizona primary results, where two candidates backed by Fairshake lost, show how unclear the impact of these investments is. Nevertheless, the major financial support is indicative of the growing political influence of the cryptocurrency industry and efforts to shape favorable regulations through calculated political donations.
Japanese company Metaplanet Inc. announced that it will generate approximately 10 billion yen through stock purchase rights, of which 8.5 billion yen will be invested in Bitcoin. All common shareholders will receive stock purchase rights from the company on September 5, and the allocation will take effect on September 6.
To prevent the currency from depreciating, Metaplanet plans to use Bitcoin as an asset with long-term appreciation. As part of its plan to use cryptocurrencies as a financial asset, the company has already purchased $6.5 million in Bitcoin in April and $2.5 million in July.
The Japanese stock market has seen its biggest one-day drop since 1987 after the Bank of Japan adjusted interest rates. This led the company to make a significant investment in Bitcoin. Metaplanet’s move to cryptocurrency reflects a growing trend among companies looking for alternative stores of value and protection against volatility in traditional markets.
OneMedNet Buys $1.8 Million to Bolster Bitcoin Treasury Strategy
OneMedNet, a healthcare data startup, used $1.8 million of its $4.6 million private placement to buy Bitcoin. Cryptocurrency investment fund Chain Capital Management bought a mix of OneMedNet shares and warrants as part of the investment round.
This investment is in line with Off The Chain Capital’s plan to beat the price of Bitcoin by buying it at a discount and allocating it to companies like OneMedNet. This strategy is similar to that of MicroStrategy and other publicly traded companies that have included Bitcoin in their financial reserve plans and added it to their balance sheets.
OneMedNet’s decision to invest a significant portion of its money in Bitcoin is a notable move for a healthcare data company. This move will encourage other non-tech companies to consider a similar approach, which will increase the number of companies using cryptocurrencies as corporate financial assets.
Blockscout Completes $3M Seed Funding to Advance EVM Block Explorer Technology
Primitive Ventures, Gnosis, and 1kx led a $3 million seed funding round for Blockscout, an open-source block explorer for EVM-based networks. The funding will help Blockscout expand its product line, improve its user experience, and include social media and AI-based tools in its dashboard.
The company aims to leverage its position as one of the few open source contributors in the market to solidify its position as the default block explorer for both new and current EVM chains.
This fundraising round demonstrates the growing importance of robust infrastructure tools in the blockchain ecosystem. Blockscout’s open-source methodology could be instrumental in facilitating transparency and accessibility across a variety of networks as the number of chains compatible with the Ethereum Virtual Machine increases, thereby establishing a new benchmark for blockchain explorers.
Andrena Invests $18 Million in Decentralized Broadband Protocol
Wireless Internet provider Andrena has raised $18 million to create DAWN, a DePIN protocol for broadband Internet. Dragonfly led the investment round with participation from Wintermute Ventures, Castle Island Ventures, and CMT Digital.
DAWN aims to provide decentralized Internet access without relying on centralized providers. The protocol is set to debut on the Solana blockchain and is currently on testnet. These funds will help DAWN finalize its smart contracts and protocol.
A major step forward in decentralizing essential infrastructure services is the creation of DAWN. Andrena’s idea has the potential to overturn the current ISP paradigm by leveraging blockchain technology and token incentives. This will give customers more control over their internet connection and promote a more robust and community-driven network design.
Bitstamp and Stripe Partner to Expand Cryptocurrency in Europe
For consumers in the European Union, payment processor Stripe is partnering with cryptocurrency exchange Bitstamp to provide a fiat-to-crypto onramp. Stripe provides developers with configurable widgets to enable them to include quick payments and cryptocurrency conversions in their products.
Bitstamp will expand its Bitstamp-as-a-service offering by processing fiat-to-cryptocurrency conversions and transfers with Stripe. The partnership is intended to accelerate growth for both businesses in the European market, but the service will not be available to UK customers.
This collaboration comes at a critical time for both companies. Stripe, which re-entered the crypto industry in 2022, sees it as a sign of their growing commitment to the space. The partnership will help Bitstamp, acquired by Robinhood, become more competitive in the European market. Together, the two initiatives have the potential to significantly reduce the barriers to cryptocurrency adoption for businesses and individuals in the EU and to integrate digital assets more broadly into the region’s financial system.
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About the Author
Victoria is a writer on a variety of technology topics including Web3.0, AI, and cryptocurrencies. Her extensive experience allows her to write insightful articles for a wider audience.
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Victoria Desté
Victoria is a writer on a variety of technology topics including Web3.0, AI, and cryptocurrencies. Her extensive experience allows her to write insightful articles for a wider audience.