With a new $15 million funding round, Hemi is positioning itself to unlock the $2.3 trillion in dormant Bitcoin value. The initiative aims to evolve the leading cryptocurrency from a mere store of value into a vibrant foundation for a new decentralized finance (DeFi) ecosystem.
Summary
- Hemi successfully raises $15 million in growth capital ahead of its token generation event, increasing total funding to $30 million.
- The funding round was spearheaded by YZi Labs, Republic Digital, and HyperChain Capital, with contributions from premier crypto investment firms.
- This capital injection is aimed at fast-tracking the development of Hemi’s Bitcoin programmability layer.
In a press release dated August 26, Hemi revealed that it had secured a $15 million growth funding round led by YZi Labs, with support from Republic Digital, HyperChain Capital, Selini Capital, Protein Capital, and Quantstamp.
This funding round attracted a consortium of other prominent investors, including Breyer Capital, Big Brains Holdings, Web3.com, and Crypto.com, elevating the project’s total funding to $30 million. Hemi emphasized that this financial boost is well-timed to facilitate ecosystem expansion and enhance its infrastructure ahead of the token generation event.
Bridging the gap in Bitcoin
Hemi asserts that Bitcoin’s $2.3 trillion market cap largely remains detached from the rapid innovations occurring in the DeFi space. While platforms like Ethereum have nurtured thriving financial ecosystems, Bitcoin’s security structure has historically been resistant to such agility.
Hemi’s framework, particularly its Hemi Virtual Machine, aims to bridge this gap by integrating a full Bitcoin node with an Ethereum Virtual Machine. This creates a so-called “supernetwork” that retains Bitcoin’s security benefits while allowing for Ethereum-like programmability.
This technical strategy reflects a philosophical perspective shared by Hemi’s founders, among them Bitcoin core developer Jeff Garzik and Proof-of-Proof consensus creator Maxwell Sanchez. Their approach seeks to sidestep the typical drawbacks associated with Bitcoin sidechains or wrapped tokens, which often sacrifice security or decentralization.
“Bitcoin doesn’t need reinvention; it requires the right tools. Hemi offers DeFi protocols an intuitive way to build on Bitcoin without demanding new skills, compromising on security, or undermining decentralization. We and our partners believe that Bitcoin can do more than just transfer value; it has the potential to sustain an entire ecosystem,” stated Hemi co-founder Jeff Garzik.
The momentum behind this vision is evident, with Hemi reporting over $1.2 billion in total value locked, establishing itself as the largest programmability layer on Bitcoin based on that metric. The network boasts more than 100,000 verified users and a community exceeding 400,000 members, bolstered by collaborations with 70 ecosystem partners, including well-known names like Sushi, LayerZero, and MetaMask.
The HEMI token
The latest funding round precedes Hemi’s highly anticipated token generation event, for which the project has recently disclosed its tokenomics. The HEMI token will serve as the primary coordination tool for network security, transaction fees, and cross-chain settlements.
With a total supply of 10 billion tokens, the allocation emphasizes community and ecosystem growth at 32%, with investors and strategic partners at 28%, team and core contributors at 25%, and the Hemispheres foundation receiving 15%.
The token’s utility includes incentivizing Bitcoin’s security inheritance via the Proof-of-Proof mechanism, facilitating chain payments for security aggregation, and enabling governance through the veHEMI staking system.
