Multicoin Capital is refusing to follow rival crypto venture firms into standalone AI investments, arguing its competitive advantage remains in digital assets. The $2.7 billion firm is also keeping Hyperliquid’s HYPE token as the largest position in its hedge fund.
Key Takeaways
- Multicoin Capital manages $2.7B and will stay crypto-focused rather than chase standalone AI deals.
- HYPE is its largest hedge fund position, reinforcing conviction in Hyperliquid and digital assets.
- Its strategy now depends on crypto specialization outperforming rivals expanding into AI and robotics.
$2.7B Multicoin Refuses AI Pivot as Crypto Rivals Diversify
Multicoin Capital is making a contrarian bet in venture capital: while money pours into artificial intelligence, the firm is staying firmly in crypto.
Speaking to Bloomberg, the Austin-based investment manager, which oversees about $2.7 billion, has no plans to widen its mandate to include pure-play AI companies, according to Spencer Applebaum, general partner and co-head of venture.
“We believe we have an edge in crypto, and we want to stay true to it,” Applebaum said.
That stance increasingly separates Multicoin from competitors such as Paradigm, Framework Ventures, and Haun Ventures, which have broadened their investment strategies as AI absorbs more venture capital.
Multicoin has never made a pure AI investment, and Applebaum sees little reason to start simply because the sector is attracting capital.
The contrast with the wider venture market is sharp. AI companies captured roughly two-thirds of all startup capital invested in the U.S. and Canada during the third quarter, according to Crunchbase. Paradigm, meanwhile, raised $1.2 billion this year for a fund that includes AI and robotics alongside crypto.
Fundraising Cools Off
Multicoin’s conviction comes during a difficult period for crypto venture managers.
Galaxy Research data showed roughly $10 billion was invested in crypto startups during the first half of 2026, putting the market near last year’s pace. But fundraising for new funds remains much harder.
Investors committed about $3.9 billion across just five new crypto-focused venture funds in the second quarter, the fewest launches since late 2019. Multicoin itself is taking longer to deploy its $422 million venture fund raised in 2022.
Applebaum said lower valuations following FTX’s collapse slowed deployment. Seed rounds around 2023 were often roughly $3 million at $30 million post-money valuations, meaning a large fund naturally required more time to invest.
HYPE Is Multicoin’s Largest Crypto Position
The firm’s commitment to digital assets extends beyond venture investing.
Applebaum said Hyperliquid’s HYPE is currently the largest position in Multicoin’s hedge fund. The firm accumulated the tokens on the open market and typically holds public investments for years rather than trading them over short periods.
That makes Multicoin’s strategy unusually clear.
While rivals hedge their exposure by chasing AI, Multicoin is betting that specialization still matters. Its thesis is that the best crypto opportunities will go first to investors with deep sector relationships, not those following whichever market currently commands the most capital.