Crypto fundraising in November saw a significant increase compared to the amounts raised in previous months. Bitcoin miners took the lead this time, accounting for 90% of transactions ahead of exchange and payment projects.
Research by the Messari market intelligence platform find that Bitcoin miners Northern Data and Phoenix Group have raised more than half of the total amount accumulated by the crypto venture capital market.
Bitcoin Miners Lead Crypto Funding for November
Over the past month, the crypto market has signed 98 transactions worth $1.75 billion, a significant increase from October’s $750 million. The top ten transactions were worth over $1.4 billion and involved various crypto projects.
Northern Data topped the list with more than $600 million in funds raised in a debt financing round, while Phoenix Group followed with $370 million in an initial public offering (IPO). Cryptocurrency exchange and wallet provider Blockchain.com came in third with $110 million raised in a Series E funding round, and blockchain-based wholesale payments company Fnality followed with close with $95 million in a Series B round.
Other major deals included strategic investments, post-IPO financing, and Series A rounds raising tens of millions of dollars for companies like Bitcoin miner Bitfarms and artificial intelligence infrastructure startup ( AI) decentralized Ritual. Last on the list was Blast, a controversial layer 2 blockchain based on Ethereum, which raised $20 million in an undisclosed round led by venture capital firm Paradigm.
Investors in the ramp-up phase
It’s worth noting that without the two huge funds raised by Northern Data and Phoenix Group, the total amount raised in November would have been $750 million, the average monthly funding since August.
However, the average transaction size increased by 50%, from $5 million in October to $7.5 million.
Kel, a researcher at Messari, said the large funding received by Bitcoin miners gives room for optimism and suggests that venture capitalists close to the sector are expecting higher Bitcoin (BTC) prices, especially with the upcoming halving. The halving will cut miners’ block rewards in half and reduce the amount of BTC produced daily. Despite fears about the impact of reduced overall rewards, venture capitalists appear to be focusing on the bright side.
At the same time, the recent rally in cryptocurrencies has not extended to private market flows. Kel thinks investors may be in a ramp-up phase that hasn’t translated into announced deals.
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