CMT Digital Ventures To Raise $150M For Its Fourth Crypto Fund

CMT Digital, a venture capital firm, is aiming to raise $150 million for its fourth fund, which will focus on longer-term crypto investments. 

The fundraising started a month ago, as reported by Fortune. If successful, this fund would be the firm’s largest, surpassing the amounts raised by its first three funds of $25.5 million, $130 million, and $100 million, respectively.

CMT Digital, a subsidiary of CMT Group has a track record of investing in over 150 prominent crypto companies like Circle, Coinbase, and ConsenSys, with a successful history in the crypto and blockchain space since 2018. Similar to CMT Digital’s plans, Kraken is reportedly planning to raise at least $100 million in a pre-IPO round, with the aim to go public as soon as next year.

CMT Digital Plans For The Fourth Fund 

Gerald Brant, the Head of Capital Formation, who previously held the same position at BlockTower Capital and Pantera Capital, is leading the fundraising efforts.

Sam Hallene, an investment partner shared the company’s approach for the fourth fund with Fortune. He said the firm is focusing on investing in companies with visions that could take three to seven years to come to fruition.

Hallene highlighted that the latest innovation wave is focusing on decentralized physical infrastructure, including “application-specific hardware” like permanent file storage or internet provision. 

Furthermore, Hallene mentioned that the company is intrigued by stablecoins due to their applications in worldwide remittances and as tokens that generate yields.

Crypto Companies Adopts Solana Blockchain 

Solana blockchain, a leading platform recognized for its exceptional speed and scalability, has seen great adoption to its platform over the years. 

Hallene cited Helium, a layer 1 blockchain migration to the Solana blockchain as an illustration that focuses on expanding the Helium network without the need to handle blockchain management.

The blockchain platform faced a significant disruption on its mainnet earlier this year, leading to a halt in block progression. Subsequently, Solvent.app introduced a revolutionary AI-powered bot network on the platform.

Crypto Market Experiences Fundraising Surge

Many crypto companies and venture firms have raised substantial funds for various purposes through fundraising efforts over the years

According to PitchBook, a well-known data provider for private and public market investors, the crypto market during the first quarter of 2024 has seen a surge in fundraising, amounting to $2.4 billion.

PitchBook indicated the U.S. Securities and Exchange Commission (SEC) approval of Spot Bitcoin ETFs has potentially played a significant role in attracting institutional investors and boosting cryptocurrency values.