Why Google Spent $1.5 Billion On Crypto-Focused Businesses?

Why Google Spent $1.5 Billion On Crypto-Focused Businesses? – According to a study by the research firm Blockdata, Google’s parent corporation has been spending aggressively in the cryptocurrency market. From September 2021 to June 2022, the tech titan and other significant organizations in the traditional banking system spent over $6 billion in digital asset startups.

According to the research, Google, Samsung, BlackRock, and other businesses are investing in initiatives and technologies that have the potential to enhance their own offers. Companies seem to be investing in specific use cases with the intention of incorporating them into their business strategies.

According to the article, it is difficult to determine how much Alphabet and other corporations have invested. Private fundraising rounds and other investment platforms facilitate the flow of funds. However, they used other ways to estimate:

We cannot calculate the amount of money these firms have invested since they engage in financing rounds with many or numerous other investors. As an indicator, we may examine the overall financing amounts of the rounds in which they participated.

The analysis used CB Insights data to gauge the firms sponsored by these large organizations. According to the research, the total number of firms that have received money from Google, BlackRock, Samsung, Goldman Sachs, and other financial titans is:

Between September 2021 and June 2022, the 40 firms invested around $6 billion in blockchain startups. Due to the presence of several investors in some rounds, it is unclear how much each corporation contributed to a project.

As seen in the table below, Alphabet has made investments in Fireblocks, Dapper Labs, Vulture, and Digital Currency Group. Only the latter business has one of the largest portfolios in the industry, with Grayscale, Abra, Genesis, and BitPay.

What are the most popular crypto applications?

As seen by the photographs, firms are cementing their places in the cryptocurrency market by investing in different industries. As previously stated, Samsung has been expanding its portfolio by investing in Yuga Labs (Bored Ape Yacht Club) and Sky Mavis with a focus on non-fungible tokens and the Metaverse (Axie Infinity).

Why Google Spent $1.5 Billion On Crypto-Focused Businesses
Why Google Spent $1.5 Billion On Crypto-Focused Businesses

 

In this regard, the research revealed that NFTs and digital assets supporting gaming services and markets were among the most sought-after use cases. Infrastructure providers, blockchain development platforms, and blockchain service providers were other popular uses.

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Alphabet and Blackrock are demonstrating an entirely different investment approach by concentrating their investments on a smaller number of firms (…). Due to rising customer demand, banks have begun to extend their exposure to crypto and blockchain services (some more than others). Consequently, they have invested in cryptocurrency custody, asset management, and trading.

TRM Labs was another firm that received considerable interest from megacorporations. A compliance agency that has been incorporated into Aave, Uniswap, and other Ethereum protocols in order to offer them with a “address screening capability” that may ban access to their platforms by certain companies. Ethereum (ETH) trades at $23,400 at the time of writing, a 2% decrease in the previous 24 hours.

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