Just over a year ago, I stood in a gilded Washington, D.C. ballroom during inauguration weekend, surrounded by the blockchain industry’s top executives and investors. They had traded in their hoodies for tuxedos and gowns, celebrating the ascension of the first “crypto president,” Donald Trump, who had embraced the once-renegade sector on the campaign trail. But halfway through the night, whispers began spreading through the crowd that Trump, who was not in attendance, had launched his own memecoin. Around the end of a DJ set by Snoop Dogg, the Trump coin had crossed $1 billion.
Some of the shrewder members of the audience immediately clocked what was happening. Trump, who has made a career out of branding everything from casinos to steaks to unaccredited colleges, was doing the same with crypto. Would Trump’s latest business venture go the way of Trump Tower or Trump University?
As we quickly found out, the quality of the Trump family’s crypto endeavors was almost a red herring (though we have reported closely on it, including in my colleague Ben Weiss’s terrific new feature on American Bitcoin). Instead, ethics watchdogs have argued that Trump has used his blockchain businesses as a way to sell access. But unlike concerns during his first term that foreign dignitaries could book rooms in Trump hotels, which taught the term “emoluments” to millions of Americans, now anyone with an internet connection could effectively wire Trump millions of dollars by setting up a digital wallet and reap the rewards. His top memecoin holders enjoyed a private audience with the president last May, though they weren’t all pleased by the food they were served.
In hindsight, those ethics concerns also look quaint. On Saturday night, the Wall Street Journal published a bombshell report that two lieutenants to a member of the Abu Dhabi royal family signed a contract to funnel $500 million into World Liberty Financial, the Trump family’s crypto platform, in exchange for a 49% ownership stake, just days before his inauguration. As the Journal plainly stated, this was something unprecedented in American politics: “A foreign government official taking a major ownership stake in an incoming U.S. president’s company.” And just a few months later, the Trump administration granted the United Arab Emirates access to advanced U.S. chips despite widespread security concerns (though a World Liberty spokesperson told Fortune that the deal had nothing to do with the administration’s actions on chips).
As the shockwaves of the scandal reverberate, an awkward question lingers: Is Trump bad for blockchain? The industry spent hundreds of millions of dollars on the 2024 election, culminating in the coronation of Trump, who has championed digital asset regulation, hosted summits, and appointed czars. But now, the landmark Clarity Act is stalled in the Senate as Democrats call for ethics provisions that would prohibit the president from profiting off crypto holdings, and that groundswell of opposition is only likely to grow. And despite Trump’s cheerleading, Bitcoin prices are nearly at their lowest price in a year, with many retail traders staying away.
For many Americans, crypto is now inextricably linked to the Trump family. Be careful what you wish for.
Merger madness…SpaceX completed a long-rumored acquisition of xAI, both Elon Musk companies, in a stunning deal that could set the joint venture up for one of the largest IPOs in history by market value. This comes months after xAI acquired X, another Musk venture, in a $33 billion, all-stock deal, and a month after Tesla revealed it had invested $2 billion in xAI. According to reporting in Bloomberg, the new deal will lead to a combined enterprise value of $1.25 trillion. You can read all about it here.
Leo Schwartz
X: @leomschwartz
Email: leo.schwartz@fortune.com
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VENTURE DEALS
- Shield Technology Partners, a Tampa, Fla.-based IT services platform, raised $100 million from Thrive Holdings.
- Biorce, a Barcelona, Spain-based company using AI to change how clinical trials are designed and conducted, raised $52 million in Series A funding from DST Global Partners, Mustard Seed Maze, and existing investors Norrsken VC and YZR Capital.
- Day AI, a Boston, Mass.-based AI-native customer relationship management platform, raised $20 million in Series A funding. Sequoia Capital led the round and was joined by Sound Ventures, Permanent Capital, Conviction, and Greenoaks.
- Linq, a Birmingham, Ala.-based platform designed to enable AI agents to iMessage, text, and call users, raised $20 million in Series A funding. TQ Ventures led the round and was joined by angel investors.
- Plug, a Santa Monica, Calif.-based electric vehicle marketplace, raised $20 million in Series A funding. Lightspeed led the round and was joined by Galvanize and existing investors.
- GoCab, an Abidjan, Ivory Coast-based company that provides gig workers with credit to buy vehicles and incentivizes them to work towards owning them, raised $15 million in funding. E3 Capital and JANNGO Capital led the round and were joined by KawiSafi Ventures and Cur8 Capital.
- Incard, a London, U.K.-based finance platform designed for ecommerce operations, raised £10 million ($13.7 million) in Series A funding. Smartfin led the round and was joined by Founders Capital, MountFund, and angel investors.
- Loop AI, a San Francisco-based agentic AI platform designed for marketing, finance, and operations teams for the restaurant and retail industries, raised $14 million in Series A funding. Nyca Partners led the round and was joined by Gokul Rajaram, Base10, Afore Capital, Converge, Alumni Ventures, and others.
- Ditto, a Berkeley, Calif.-based AI-powered date planner for college students, raised $9.2 million in seed funding. Peak XV Partners led the round and was joined by Gradient, Scribble Ventures, Alumni Ventures, and Llama Ventures.
- Arbor, a New York City-based AI research platform for enterprise operations, raised $6.3 million across seed and pre-seed rounds. 645 Ventures led the round and was joined by Next Play Ventures, Chaac Ventures, Comma Capital, and angel investors.
- Supra Elemental Recovery, an Austin, Texas-based critical minerals recovery and refining company, raised $2 million. Crucible Capital led the round and was joined by UT Seed Fund, Climate Capital, Portmanteau Ventures, and Pew Protection Trust.
PRIVATE EQUITY
- Vision Innovative Partners, backed by Gryphon Investors, acquired Ophthalmic Associates of Alexandria, an Alexandria, Va.-based ophthalmology practice. Financial terms were not disclosed.
EXITS
- G2 acquired Capterra, an Arlington, Va.-based software discovery platform, Software Advice, an Austin, Texas-based software discovery platform, and GetApp, a Stamford, Conn.-based software discovery platform, from Gartner. Financial terms were not disclosed.
FUNDS + FUNDS OF FUNDS
- Constructor Capital, a Zurich, Switzerland-based venture capital firm, raised $110 million for its first fund focused on deeptech, software, and educational technology companies.
PEOPLE
- Bregal Sagemount, a New York City and Palo Alto, Calif.-based private equity firm promoted Will Breskman to partner. Also, Harrison Brunelli and Steve Griffin were promoted to principal.
- Brighton Park Capital, New York City-based private equity firm, hired Connie Heil as a partner. Previously, she was with Arsenal Capital Partners.
- Everywhere Partners, a New York City-based venture capital firm, hired Anna Barber as a general partner. She’s staying on at M13 as a board partner
- Ironspring Ventures, an Austin, Texas-based venture capital firm, hired Drew Kriens as principal. Previously, he was a senior associate at Standard Investments.
