Alphabet is the world’s top blockchain-friendly investor, pumping $1.5 billion into the sector
Although blockchain technology is still growing, some established companies are pumping money into different projects that offer specific use cases.
In fact, Alphabet (NASDAQ: GOOGL ) invested $1.56 billion in blockchain companies between September 2021 and June 2022 with four rounds, taking the lead among publicly traded firms investing in the sector, research published by Block data on August 11 indicates.
During the period, Blackrock (NYSE: BLK ), with three rounds, invested $1.17 billion, followed by banking giant Morgan Stanley (NYSE: MS ) at $1.1 billion with two rounds. Elsewhere, electronics giant Samsung leads the 13 funding rounds with $979 million, while Goldman Sachs (NYSE: GS ) takes fifth place with $698 million.
Google’s Blockchain Foray
In recent years, Alphabet, the parent company of Google, has made inroads into the blockchain sector with several initiatives as more customers continue to adopt disintermediate peer-to-peer transactions.
Initially, Google took a cautious approach to blockchain, but has since tempered its stance by venturing into new new disciplines under the sector. For example, Alphabet partnered with Dapper Labs, a blockchain studio that develops Web 3.0 products.
“We are definitely looking at blockchain; it is such an interesting and powerful technology with wide applications,” said Alphabet CEO Sundar Pichai.
Instead of opening their blockchain ventures, the covered companies are finding innovative entities and portfolios that are likely to add value to their core business growth.
Companies betting on blockchain
Overall, companies venture into blockchain when it is still uncertain whether the technology will catch on. However, projections indicate that the development of blockchain is bound to grow in the coming years. This aspect enables the companies to establish traction and a competitive advantage in the growing technology area.
It is worth mentioning that the entities have pumped more money into the space despite the extended correction of the crypto market that has thrown several firms into bankruptcy. For example, crypto lending platforms Celsius and Voyager Digital filed for bankruptcy, citing the volatile market conditions.
Furthermore, blockchain-based firms such as crypto exchange Coinbase (NASDAQ: COIN) have been forced to adjust their operations. The company announced a hiring freeze alongside laying off some employees to limit the turbulent market situation.
Interestingly, Finbold reported that as of July 2022, cryptocurrency companies had raised over $29 billion, a figure $2 billion less than the total value of $31 billion recorded in all of 2021.
