Arbitrum (ARB) wanted to join Nvidia’s Ignition AI Accelerator program but was reportedly turned down as part of the chipmaker’s risk control strategy.
The Layer-2 (L2) network has been strategically attempting to rebuild its reputation amid an ongoing struggle to recover from an 85% price dip.
Nvidia Turns Down Arbitrum’s Bid
Reports indicate that Arbitrum had originally planned to be the Ethereum partner in Nvidia’s Ignition AI Accelerator program. However, the L2 network was reportedly turned down at the last moment.
As it happened, the American multinational technology company prefers to avoid crypto firms for risk control purposes.
“Nvidia recently explicitly excluded cryptocurrency-related projects from its Inception program,” Wu Blockchain reported.
Indeed, when Nvidia launched its accelerator program, the firm articulated on the application page that crypto-related firms would not be eligible.
“The following types of organizations do not qualify for membership: Consulting and outsourced development firms, companies associated with cryptocurrency, cloud service providers, resellers and distributors, and public companies,” read an excerpt on the application page.
This stance presents a calculated risk to preserve the GPU giant’s AI-first brand identity. Nevertheless, some say the move could stifle innovation as artificial intelligence and decentralized systems tend to intersect.
“The recent announcement by Nvidia to exclude cryptocurrency-related projects from its Inception program raises questions about the future of collaboration between traditional tech giants and the blockchain sector,” one user shared on X (Twitter).
Arbitrum is Ethereum’s largest layer-two scaling solution, trailed by other players in the same space, including Optimism (OP). Data on L2Beats shows Arbitrum One, the optimistic rollup that inherits Ethereum’s security by posting transactions on-chain, leads L2s in TVL metrics.
While Arbitrum leads L2 scaling solutions, it remains well below its December 6, 2024, high of $1.2384. Against this backdrop, the network has been taking steps to recover.
Among them is a token buyback initiative in March to strengthen its ecosystem and absorb supply shocks due to a massive token unlock event. For a time, the initiative worked, buoying ARB price 36% before the downtrend continued, bottoming out at $0.2420 on April 7.
Nevertheless, analysts suggested more interventions with the token still over 70% below its December highs. Yogi, a well-known wallet maxi, said strategies like token buybacks lack long-term vision as they signal a slowdown in innovation.
Similarly, a Messari Crypto researcher, Patryk, suggested that Arbitrum remains flexible and deploys funds into strategic areas over time rather than committing to a rigid framework such as token buybacks.
“I think projects will do this eventually. It’s just difficult to announce a concrete plan for the funds at the beginning of buybacks, like those that Arbitrum just announced. Remain flexible,” the researcher suggested.
Accordingly, Arbitrum may have considered pivoting to Nvidia’s accelerator program for a competitive edge. Now that this plan has fallen, Aributrum faces an ARB airdrops proposal to incentivize early supporters.
Speculation about Nvidia adding Bitcoin to its treasury reserves has surfaced recently. These unconfirmed reports lead to questions about the potential for increased institutional adoption of Bitcoin and the possible performance of such a move for Nvidia, whose stock value has fallen considerably this year.
BeInCrypto interviewed representatives from Banxe, FINEQIA, CoinShares, Bitunix, and Acre BTC to discuss Bitcoin’s potential benefits for Nvidia and explore whether such an investment would ultimately benefit the company in the long run.
Rumors of Nvidia’s Potential Bitcoin Investment
Over the past few weeks, several reports have surfaced across social media suggesting that Nvidia, a pioneer in GPU-accelerated computing, is considering adding Bitcoin to its balance sheet.
These reports remain purely speculative at the time of press, given that Nvidia has not made any official statements on the topic. When BeInCrypto reached out for clarification, an Nvidia spokesperson declined to comment.
Even as rumors, these reports highlight the significant impact of such a decision on Bitcoin’s public perception. Given Nvidia’s current economic circumstances, marked by a substantial drop in stock value, an announcement of this nature would not be completely unexpected.
As such, Nvidia’s stock price has taken a hit. According to recent reports, Nvidia stock has fallen 35% since its latest price peak in January.
Nvidia’s stock reacted especially poorly to the news that China’s Huawei Technologies is testing a new AI chip potentially more powerful than Nvidia’s H100.
Given these circumstances, Nvidia can mitigate current economic challenges by diversifying its treasury assets.
Should Nvidia Consider Adding Bitcoin to Its Balance Sheet?
Such a move would significantly alter how other institutional investors view Bitcoin, potentially encouraging more companies to adopt a similar strategy. The crypto community would likely celebrate the news, believing it would solidify Bitcoin’s legitimacy as an asset class.
However, the extent to which Nvidia requires Bitcoin for stability remains controversial.
Risks of Adding Bitcoin to Nvidia’s Treasury
As it is, Nvidia already has other strategies that help the company hedge against volatility and inflation. Adding Bitcoin into the mix may seem excessive.
This becomes especially true when considering just how volatile Bitcoin itself can be. Though the asset can generate significant gains during bullish periods, the losses it can cause are equally severe.
As such, Bitcoin might not be the natural choice to defend Nvidia from its current stock declines. An investment of this kind would need to reflect a long-term strategy rather than an impulse decision.
Would BTC Even Make a Difference on Nvidia’s Share Price?
Bitcoin has demonstrated high returns over the long term, though with considerable volatility. For companies able to withstand the associated risks, including large price fluctuations, it offers the potential for significant future profits.
With its substantial financial resources, Nvidia could absorb Bitcoin’s volatility without a major impact on its balance sheet. In this sense, the company has little to lose, but also little to gain.
Ultimately, Nvidia’s decision to invest in Bitcoin hinges on timing and urgency, particularly given recent developments that have alleviated some pressures on the company.
Easing Export Restrictions: A Boost for Nvidia
Last week, the Trump administration announced its plans to roll back certain Biden-era export restrictions on advanced semiconductor chips.
Biden’s ‘AI Diffusion Rule’ established these restrictions to enhance US technological leadership by preventing advanced chips from being diverted to countries of concern, especially China. Given that China was Nvidia’s main buyer, the rule significantly hampered its sales.
A rollback would be highly advantageous for Nvidia’s sales, especially amid this new wave of chipmakers.
Similarly, the recent US-China tariff pause led to Nvidia’s stock price rise. Despite its temporary nature, the news is a positive sign for the company, promising reduced uncertainty and potential gains in sales and supply chain stability.
Considering these developments, adding Bitcoin to Nvidia’s balance sheet may no longer be urgent. If Nvidia were to make such a decision out of haste, it might also drive away traditional investors and long-time buyers.
Many areas of traditional finance remain highly skeptical of Bitcoin due to its short history and highly volatile nature. If Nvidia adds Bitcoin as a treasury asset, traditional investors might view it as a poor decision, potentially alienating long-time clients.
The Trump family’s World Liberty Financial (WLFI) continues to make headlines, extending its reach in the crypto arena. Recent developments follow key announcements during Token2049 in Dubai.
Eric Trump made interesting revelations during the event, including integrations involving USD1 stablecoin.
World Liberty Financial During 2049: What Users Need To Know
Speaking at the Token2049 event, Eric Trump announced the integration of World Liberty Financial’s USD1 stablecoin with Tron.
Trump’s DeFi venture launched the USD1 stablecoin only recently, commissioning it to promote dollar dominance. Short-term US treasuries and cash equivalents back the stablecoin.
Notwithstanding this integration, USD1 will be deployed as a TRC-20 token on the Tron blockchain. This would allow USD1 to leverage Tron’s high-throughput, low-cost blockchain for transactions, smart contracts, and DeFi applications.
USD1 Stablecoin To Close $2 billion MGX-Binance Deal
Another interesting revelation during Token2049 is that World Liberty Financial’s USD1 is the choice stablecoin for MGX’s $2 billion investment in Binance.
“MGX, an Abu Dhabi sovereign wealth fund, invests $2 billion in Binance for a minority stake. The transaction will be 100% in crypto (stablecoins), marking it the largest investment transaction done in crypto to date. This is also the first institutional investment Binance has taken. Onwards, Build!” wrote Changpeng Zhao (CZ), Binance founder and former CEO.
With USD1 ascending to become the choice stablecoin in this landmark investment, it points to growing adoption and legitimacy for the token.
The investment will see MGX secure a stake in Binance, becoming one of the first institutional investments in the world’s largest exchange.
Notably, this revelation comes only days after World Liberty Financial executives met with Changpeng Zhao in Abu Dhabi. They reportedly discussed standardizing the crypto industry and boosting global adoption efforts.
Meanwhile, amidst these revelations around the DeFi venture, data shows that USD1 stablecoin has exceeded $2 billion in market capitalization metrics.
(@justinsuntron) 
