Note: The story was updated with a Google spokesperson’s comment on August 19th, 2022.
Although blockchain technology is still growing, some established companies are pumping money into different projects offering specific use cases.
Indeed, Alphabet (NASDAQ: GOOGL) invested $1.506 billion in blockchain companies between September 2021 and June 2022 with four rounds, taking the lead among publicly listed firms investing in the sector, research published by Blockdata 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, electronic giant Samsung leads in the number of funding rounds at 13 with $979 million, while Goldman Sachs (NYSE: GS) occupies the fifth spot at $698 million.
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However, Google disputed the report’s format, claiming that the statistics were misleading since they only indicated the total amount of each fundraising round and not Google’s participation to each round.
A Google spokesperson told Finbold:
“As the report says, while the small number of Blockchain-related companies we’ve invested in have raised $1.5 billion in total, we have only invested a small fraction of that ourselves.”
Google’s blockchain inroads
In recent years, Alphabet, the parent company of Google, has made inroads into the blockchain sector with several initiatives as more clients continue to adopt disintermediated peer-to-peer transactions.
Initially, Google adopted a cautious approach towards blockchain but has since softened its stance by venturing into new emerging disciplines under the sector. For instance, Alphabet partnered with Dapper Labs, a blockchain studio developing Web 3.0 products.
“We are definitely looking at blockchain; it’s such an interesting and powerful technology with broad 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, the companies are venturing into blockchain when it’s still uncertain if the technology will pick up. However, projections indicate that blockchain development is bound to grow in the coming years. This aspect enables the firms to establish traction and a competitive advantage in the growing tech area.
It is worth mentioning that the entities have pumped more money into the space despite the extended crypto market correction that has plunged several firms into bankruptcy. For instance, crypto lending platforms Celsius and Voyager Digital applied for bankruptcy, citing the volatile market conditions.
Furthermore, blockchain-based firms like crypto exchange Coinbase (NASDAQ: COIN) have been forced to readjust their operations. The company announced a hiring freeze alongside laying off some staff to contain 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 across the whole of 2021.
