Alphabet, Google’s parent company, is said to have invested a total of $1.5 billion in four blockchain companies from September 2021 to June 2022, cryptocurrency research firm BlockData reported on August 16. This study shows that several industry players, such as Tencent, Microsoft, Samsung and Paypal, have an increased interest in blockchain-related technologies. Over the period observed, before the recent crash of the sector, more than 6 billion dollars were invested in 61 companies dedicated to blockchain.
Google at the top of the ranking of the biggest investments
Last January, the Mountain View firm opened a branch entirely dedicated to blockchain. On this occasion, the CEO of the American giant, Sundar Pichai, expressed his interest in cryptocurrencies. The goal of this strategy was to help supplement the largely neglected Google Pay app. For him, this could go through the creation of a cryptocurrency. After being discreet on the subject, BlockData’s study bears witness to Google’s recent activity in the blockchain sector.
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The Californian company is said to have invested $1.5 billion in Dapper Labs, Voltage, Fireblocks, and Digital Currency Group. Dapper Labs is an NFT company behind the crypto game CryptoKittie, which was not spared from the recent cryptocurrency crash. Fireblocks, which raised $550 million from Google-owned investment fund CapitalG, is a cryptocurrency custodian. Voltage is a cryptocurrency platform and Digital Currency Group is a venture capital firm.
These multiple investments give an idea of the direction that Google is taking in its strategy related to blockchain technologies. The firm is at the top of the ranking of the largest investors, established by BlockData. The research firm points out that Google’s first investments in blockchain date back to 2016. However, the difficult economic situation for many startups, following the recent cryptocurrency crash, calls into question the relevance of these investments.
Google leads the ranking of companies that have invested in blockchain. Image: BlockData.
Blockchain seduces companies despite the risks
Samsung hasn’t wasted any time in recent months either. The South Korean manufacturer has injected a total of $979 million into 13 blockchain companies and startups. Yuga Labs, creator of the famous Bored Ape Yacht Club NFTs, is one of the companies affected. However, Samsung withdrew its investment last March, shortly before these NFTs were scammed for $13.7 million. Sky Mavis, behind the crypto game Axie Infinity, has also raised funds from the company. The title had been targeted by a major cyberattack at the end of March.
Other tech companies have invested in blockchain. Paypal helped four startups raise a total of $650 million and Microsoft invested $477 million in two companies. Despite the multiplication of investments and their size, they have not all proved fruitful. Tech players have bet on the potential of blockchain technology, which is currently not at its best.