Two Austin companies — a bitcoin financial services firm and a medical cannabis provider — have raised a combined $46 million for expansion.
Unchained Capital, founded in 2016, raised $25 million in a funding round led by crypto-asset management firm NYDIG and its parent company, Stone Ridge Holdings.
Existing investors including Ecliptic Capital, Starting Line and TVP Bitcoin Venture Fund also participated in funding round.
NYDIG, in addition to the investment, made an incremental lending commitment of $100 million, for a total $150 million, to Unchained Capital.
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Unchained Capital is building a technology and financial services services platform for individuals and businesses that store long-term wealth in bitcoin and require private key ownership. Bitcoin is a digital currency — or cryptocurrency — that is not backed by any government or central bank. Users can exchange it amongst themselves without the involvement of traditional intermediaries like banks and governments.
The company says its bitcoin native ecosystem will ensure that users can secure and maximize the value of their bitcoin holdings over multiple generations.
In February, NYDIG made an initial investment in Unchained Capital through a minority equity stake and agreed to provide $50 million of lending capital. The partnership enabled Unchained to accelerate development of its platform, and contributed to a five-fold increase in Unchained’s bitcoin-collateralized lending business over the past six months.
“Our existing partnership with NYDIG has unlocked significant value and the expanded investment to lead our Series A will help further transform our company as a leading financial institution for long-term bitcoin holders,” said Joe Kelly, Unchained Capital co-founder and CEO.
Meanwhile, licensed medical marijuana producer Texas Original Compassionate Cultivation has received $21 million to bolster the company’s production and support its statewide delivery strategy.
The funding round was led by AFI Capital Partners, a growth equity fund that invests exclusively in the cannabis industry.
“This raise demonstrates our ongoing commitment to the Texas cannabis industry and to our current and future patients throughout the state,” said Morris Denton, CEO of Texas Original Compassionate Cultivation.
Texas Original Compassionate Cultivation’s latest funding follows the close of Texas’ 87th legislative session, where House Bill 1535 — a bill that only slightly expands the medical marijuana program in the state — passed in both chambers.
“We believe in the power and truth of this plant,” Denton said. “With the latest progress in the legislature, our team is focused on meeting the needs of our existing patients and serving the thousands of newly qualified patients with the highest quality cannabis medicine.”