Arca and BlockTower Capital to Merge

The digital asset financial institution Arca and crypto investment firm BlockTower Capital plan to merge.

The firms signed a letter of intent for an all-equity deal, according to a joint company release on Wednesday. While their respective business units will transition into a unified brand, BlockTower Venture Capital will remain independent.

Jeff Dorman, Arca Co-Founder and Chief Investment Officer, noted that new investment vehicles are expected to emerge following the consolidation.

> "Arca is an excellent match for BlockTower because we share similar investment principles, values, and long-term vision for successful asset management in the digital assets space," said Ari Paul, BlockTower Co-Founder and Chief Investment Officer. "Our alignment includes a commitment to operational excellence, a foremost emphasis on our fiduciary role and the duties accompanying it, and setting a high ethical bar in treating all stakeholders."

BlockTower Capital has invested in Aptos Labs, Dapper Labs, and Solana, while Arca's portfolio includes Mintify and Bitwave, according to venture investment tracker DealRooms.