Palantir surges as cryptocurrency fuels digital warfare

Palantir Achieves Outstanding Growth as Cryptocurrency Drives Digital Warfare The defense technology sector emerges as the brightest spot as the global geopolitical situation becomes more tense than ever, influenced by actions and counteractions in the Middle East, with the world's largest economy drawn into the conflict. As attacks on Iran's nuclear facilities highlight modern warfare tools — especially high-tech devices — investors eagerly seek opportunities to benefit from this escalating crisis. Defense Technology Investment Booms with Strategic Partnerships Amid speculation about World War III, defense technology companies are attracting significant capital as nations prepare for the worst-case scenario. Palantir's stock, a US data processing company closely linked to the Pentagon, has increased by over 80% this year, with a market capitalization of $325 billion, four times that of traditional defense corporations like BAE Systems. To meet this growing demand, industry businesses must ensure supply chains, sign contracts with major contractors, and directly participate in production and development processes. However, a major challenge is the weakened supply chain, made even more difficult by complex global geopolitical tensions. A prime example is Airo, a drone and electronic aviation company, which has warned of "limited supplies" in Europe and Canada for critical components and materials. In response, Helsing and Anduril are actively strengthening cooperation. Helsing is reportedly acquiring composite aircraft manufacturer Grob Aircraft and collaborating with Sweden's Saab. Meanwhile, US-based Anduril Industries has acquired several companies like Adranos and formed an alliance with Rheinmetall to develop drones for the European market. Bavaria's military software developer Blackned has also partnered with Germany's primary defense contractor and won a €1.2 billion contract from Bundeswehr. European Union Supports Defense Sector Amid Surging Demand Even with high demand, small businesses struggle to access financial resources, from equity capital to bank loans. While venture loans have partially filled the gap, governments are increasing support. This month, Europe tripled its loan amount to €3 billion for small and medium defense enterprises. This program is part of the European Investment Bank's European Security and Defense Credit Fund, aimed at enhancing Europe's defense capabilities amid tense geopolitical circumstances. The €3 billion loan expansion focuses on intermediate capital support for small and medium businesses, along with medium-sized companies in the security and defense supply chain. These businesses are considered essential suppliers for leading defense corporations like Airbus, Thales, Rheinmetall, and Leonardo. History proves that capital always drives innovation, sometimes through testing and failure. In World War II, many designs accepted on paper failed on the battlefield. Amid the current escalating tensions, defense companies and investors have opportunities to test and refine products faster than during peacetime, thereby increasing competitive advantages.