Multicoin Capital Management has decided to maintain its focus on cryptocurrency investments despite growing interest in artificial intelligence (AI) among rival venture capital firms. The Austin-based investment company manages USD 2.7 billion in assets and continues to invest in crypto startups and digital assets.
The decision comes as AI attracts more venture capital, while crypto investment firms face challenges raising new funds.
Multicoin Capital Stays Focused on Crypto Instead of AI
Spencer Applebaum, Multicoin's general partner and co-head of venture, told Bloomberg on October 19 that the company has no plans to expand its investment strategy to standalone AI businesses.
“We believe we have an edge in crypto, and we want to stay true to it,” Applebaum said. He joined the firm in 2018 and said its relationships with crypto founders help it identify investment opportunities.
Applebaum also questioned attempts to combine the two industries without clear business needs. “For the most part, people are in search of a problem that doesn’t exist at the intersection of crypto and AI,” he said. “A lot of investors are trying to force it.”
Rival Crypto Venture Firms Expand Into AI
Other crypto investment managers have moved beyond digital assets. Paradigm raised USD 1.2 billion in July for a fund covering AI, robotics, and crypto companies. Framework Ventures and Haun Ventures have also expanded their investment strategies.
Meanwhile, Crunchbase data showed that US and Canadian startups raised USD 92 billion during the third quarter of 2026. AI companies attracted approximately USD 61 billion, accounting for nearly two-thirds of that total.
The figures show AI's growing share of startup investment, although they do not establish how much capital moved directly from crypto into AI. Multicoin has never made a standalone AI investment, according to Applebaum.
Crypto Fundraising Slows as Multicoin Deploys 2022 Fund
Galaxy Research reported that investors provided approximately USD 10 billion to crypto startups during the first half of 2026, close to the pace recorded in 2025. However, investors committed roughly USD 3.9 billion across just five new crypto venture funds during the second quarter.
Multicoin is still deploying its USD 422 million venture fund raised in 2022. Applebaum linked the slower investment schedule to smaller funding rounds and lower company valuations following the collapse of crypto exchange FTX.
He explained that seed funding rounds in 2023 often raised approximately USD 3 million at company valuations of USD 30 million after investment. These smaller deals require more time to deploy a fund worth hundreds of millions.
Hyperliquid's HYPE Leads Multicoin Hedge Fund Holdings
Multicoin also maintains direct cryptocurrency investments through its hedge fund. Applebaum identified HYPE, the token associated with decentralized derivatives exchange Hyperliquid, as the fund's largest position.
The company purchased HYPE tokens on the open market rather than through a private funding round. Applebaum declined to disclose the holding's value but said Multicoin generally keeps publicly traded investments for years rather than trading them over shorter periods.
Meanwhile, views on AI's relationship with cryptocurrency differ across the industry. Speaking at Token2049 in Singapore on October 7, Eric Trump said AI growth could support digital asset adoption.
“The thing that’s going to spawn the growth of digital assets by far the quickest is actually the AI trade,” Eric Trump said. His comments linked AI expansion to future cryptocurrency demand, while Multicoin continues to prioritize investments within the digital asset sector.
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