C1 Fund Bets on Crypto's Plumbing with Investment in Alchemy

PALO ALTO, CA – November 25, 2025 – In a move that sends a clear signal about the maturation of the digital asset economy, publicly-traded C1 Fund Inc. (NYSE: CFND) has added Web3 infrastructure leader Alchemy to its portfolio. While the financial terms remain undisclosed, the investment itself is a potent indicator, highlighting a strategic pivot by institutional players from the volatility of cryptocurrencies to the foundational, and potentially more durable, ‘picks and shovels’ that underpin the entire ecosystem.

Alchemy, often dubbed the ‘Amazon Web Services of crypto,’ provides the critical backend infrastructure that allows developers to build and scale blockchain applications. The investment by C1 Fund, a firm dedicated to backing the digital asset sector's blue-chips, reinforces Alchemy’s dominant position and speaks volumes about where seasoned investors see long-term value.

“Alchemy is the leading infrastructure provider accelerating the growth of Web3 development,” said Elliot Han, Chief Investment Officer of C1 Fund Inc., in the official announcement. “Our investment reflects our conviction in Alchemy’s role as a core enabler of next-generation digital-asset applications.”

The ‘Picks and Shovels’ Play Matures

The decision by C1 Fund to invest in Alchemy is a textbook execution of its stated thesis: to construct a concentrated portfolio of what it believes to be the 30 top-tier digital asset companies. This strategy deliberately sidesteps direct exposure to the price swings of Bitcoin or Ethereum, focusing instead on the companies providing essential services. This approach treats the digital asset economy less like a casino and more like a burgeoning industrial sector in need of foundational tools.

A look at C1 Fund's other holdings reveals a clear pattern. The portfolio already includes exchange giant Kraken, cross-border payment network Ripple, blockchain analytics firm Chainalysis, and infrastructure provider Figment. Together, these companies form the bedrock of the crypto economy, facilitating trades, securing networks, ensuring compliance, and enabling development. Alchemy, which powers everything from decentralized finance (DeFi) platforms to NFT marketplaces, is a natural and arguably essential addition to this lineup.

“We are pleased to add Alchemy to the C1 Fund portfolio as we continue investing in leading technology platforms within the digital-asset ecosystem,” stated Dr. Najam Kidwai, Chief Executive Officer of C1 Fund Inc. “Alchemy’s infrastructure, multi-chain capabilities, and growth trajectory are aligned with our focus on companies building durable, long-term value.”

However, this strategic focus on infrastructure has not yet translated into a windfall for C1 Fund's public shareholders. Since its IPO in August 2025, the fund's stock (CFND) has struggled, trading near the low end of its 52-week range. This performance underscores the reality that even a de-risked, infrastructure-focused strategy is subject to broader market sentiment and the long-term timelines required for the Web3 space to fully mature. The investment in Alchemy is not a short-term trade, but a long-term bet on the eventual ubiquity of blockchain technology.

Bridging Wall Street and Web3

Alchemy's significance extends far beyond the crypto-native world. A key growth signal is its successful integration with established financial and technology titans, effectively acting as the bridge between traditional finance (TradFi) and the decentralized future. The company's client list is a testament to this, featuring not just crypto leaders like OpenSea and Aave, but also mainstream giants like Adobe, Stripe, and Robinhood.

Perhaps the most compelling evidence of this convergence is Alchemy's collaboration with JPMorgan. The banking behemoth utilized Alchemy’s infrastructure to launch a proof of concept for its USD deposit token on a public blockchain. This allows a regulated, traditional institution to interact with on-chain assets without holding volatile cryptocurrencies on its balance sheet, a critical step for institutional adoption. It represents a quiet but profound acknowledgment from the heart of Wall Street that blockchain technology offers tangible efficiencies for transferring value and information.

This trend is echoed by other clients. Stripe has re-entered the crypto payments space, leveraging infrastructure from providers like Alchemy to allow merchants to accept stablecoins. PayPal, Meta, and Circle all rely on this foundational layer to power their stablecoin and digital asset initiatives. Alchemy claims its platform underpins over $150 billion in annual on-chain transaction value, a figure that has grown exponentially in recent years, demonstrating the scaling demand for its services.

The High-Stakes Race for Dominance

While C1 Fund's investment bestows a significant vote of confidence, Alchemy operates in a fiercely competitive landscape. The race to become the indispensable 'AWS of Crypto' is crowded with well-funded and technologically sophisticated rivals. Its primary competitor, Infura, owned by Ethereum powerhouse ConsenSys, has long been a dominant force in the space. Other major players like QuickNode and Ankr are aggressively carving out market share.

These competitors differentiate on various fronts. QuickNode, which raised $60 million in early 2023 at an $800 million valuation, markets itself on raw speed and performance, boasting clients like Google and Visa. Ankr, meanwhile, is building a more decentralized infrastructure network and has secured strategic partnerships with Microsoft and Tencent Cloud to integrate its API services into their cloud marketplaces.

In this environment, Alchemy's last major funding round—a $200 million raise in February 2022 that valued the company at a staggering $10.2 billion—seems a world away from today's market realities. Secondary market data suggests a current implied valuation at a significant discount to that peak, a common trend across the tech sector post-2021. Yet, this consolidation may have created the attractive entry point for C1 Fund. Despite the market correction, Alchemy's technical prowess, extensive developer tools, and its success in attracting both emerging developers and enterprise clients have solidified its position as a frontrunner. The backing from a public fund like C1 provides not just capital, but a layer of legitimacy that could prove crucial in the ongoing platform war to build the foundation of the next internet.