Multicoin Capital Sticks to Crypto as Rival Firms Expand into AI Investments

Multicoin Capital Management has decided to keep its focus on cryptocurrency investments even as rival venture capital firms increasingly direct capital toward artificial intelligence. The Austin-based firm manages USD 2.7 billion in assets. Spencer Applebaum, Multicoin's general partner and co-head of venture, told Bloomberg on October 19 that the firm has no plans to expand into standalone AI businesses. "We believe we have an edge in crypto, and we want to stay true to it," Applebaum said, adding that the firm's relationships with crypto founders help it identify opportunities. He also questioned efforts to combine the two sectors without clear business needs, stating that "for the most part, people are in search of a problem that doesn't exist at the intersection of crypto and AI."

The divergence comes as other crypto-focused investors broaden their mandates. Paradigm raised USD 1.2 billion in July for a fund covering AI, robotics, and crypto companies, while Framework Ventures and Haun Ventures have also expanded their strategies. Crunchbase data cited in the report show US and Canadian startups raised USD 92 billion in the third quarter of 2026, with AI companies attracting approximately USD 61 billion. The figures illustrate AI's growing share of startup investment but do not establish how much capital moved directly from crypto into AI.

Crypto fundraising has been more subdued. Galaxy Research reported that investors provided approximately USD 10 billion to crypto startups in the first half of 2026, close to the 2025 pace, though only roughly USD 3.9 billion was committed across five new crypto venture funds in the second quarter. Multicoin is still deploying its USD 422 million venture fund raised in 2022. Applebaum attributed the slower schedule to smaller funding rounds and lower valuations following the collapse of FTX; he noted that 2023 seed rounds often raised about USD 3 million at post-money valuations near USD 30 million, requiring more time to deploy a fund of several hundred million dollars.

Multicoin also holds direct crypto assets through its hedge fund. Applebaum identified HYPE, the token associated with decentralized derivatives exchange Hyperliquid, as the fund's largest position. The tokens were bought on the open market rather than in a private round, and Applebaum declined to disclose the position's value, adding that the firm typically holds publicly traded investments for years. Separately, Eric Trump, speaking at Token2049 in Singapore on October 7, said that "the AI trade" could be the fastest driver of digital asset growth, a view that contrasts with Multicoin's stated approach.