Key Takeaways
- • Multicoin Capital, which manages approximately $2.7 billion in assets from Austin, Texas, has named Hyperliquid's HYPE token as the largest position in its liquid hedge fund, according to General Partner Spencer Applebaum in an October 19 Bloomberg interview.
- • Multicoin is explicitly rejecting the AI pivot pursued by rivals such as Paradigm, Framework Ventures, and Haun Ventures, with Applebaum stating, "We believe we have an edge in crypto, and we want to stay true to it."
- • The firm acquired its HYPE holdings through open market purchases rather than private token allocations, and typically holds publicly traded investments for several years.
- • The firm did not disclose the size or dollar value of its HYPE position.
- • Slow deployment of the $422 million venture fund raised in 2022 is attributed to lower startup valuations after the FTX collapse and seed rounds of roughly $3 million at $30 million valuations becoming common in 2023.
Summary
Multicoin Capital, managing approximately $2.7 billion in assets, has identified Hyperliquid's HYPE token as the largest position in its liquid hedge fund, while reaffirming its commitment to digital assets rather than expanding into artificial intelligence. General Partner Spencer Applebaum made the remarks in an October 19 Bloomberg interview, according to the report. The Austin-based firm said it will continue to focus on crypto even as rival venture capital firms broaden their investment mandates.
Applebaum said Multicoin acquired its HYPE holdings through open market purchases rather than private token allocations, and that the firm typically holds publicly traded investments for several years. The firm did not disclose the size or value of the HYPE position.
Multicoin's stance contrasts with competitors including Paradigm, Framework Ventures, and Haun Ventures, which have expanded beyond cryptocurrencies into artificial intelligence and other emerging technologies. Applebaum questioned whether combining crypto and AI offers compelling investment opportunities, arguing that some investors attempt to link the sectors without identifying meaningful problems to solve. The firm remains open to projects that combine blockchain infrastructure with AI applications, including Grass, a decentralized network supplying data infrastructure to AI companies that has received investments from Multicoin's hedge and venture funds.
Applebaum also addressed the slower deployment of Multicoin's $422 million venture fund, raised in 2022. He attributed the pace to declining startup valuations following the collapse of FTX, and said seed rounds of approximately $3 million at $30 million valuations became common in 2023, making it harder to deploy a large venture fund quickly.
Applebaum said Multicoin acquired its HYPE holdings through open market purchases rather than private token allocations, and that the firm typically holds publicly traded investments for several years. The firm did not disclose the size or value of the HYPE position.
Multicoin's stance contrasts with competitors including Paradigm, Framework Ventures, and Haun Ventures, which have expanded beyond cryptocurrencies into artificial intelligence and other emerging technologies. Applebaum questioned whether combining crypto and AI offers compelling investment opportunities, arguing that some investors attempt to link the sectors without identifying meaningful problems to solve. The firm remains open to projects that combine blockchain infrastructure with AI applications, including Grass, a decentralized network supplying data infrastructure to AI companies that has received investments from Multicoin's hedge and venture funds.
Applebaum also addressed the slower deployment of Multicoin's $422 million venture fund, raised in 2022. He attributed the pace to declining startup valuations following the collapse of FTX, and said seed rounds of approximately $3 million at $30 million valuations became common in 2023, making it harder to deploy a large venture fund quickly.
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