Key Takeaways
- • Multicoin Capital, an Austin-based firm managing approximately $2.7 billion in assets, has identified 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.
- • Applebaum reaffirmed that Multicoin will remain focused on crypto rather than expanding into artificial intelligence, stating "We believe we have an edge in crypto, and we want to stay true to it."
- • Multicoin acquired its HYPE holdings through open market purchases rather than private token allocations, and the firm typically holds publicly traded investments for several years.
- • The firm did not disclose the size or value of its HYPE position.
- • Multicoin's $422 million venture fund, raised in 2022, is being deployed more slowly, which Applebaum attributed to lower startup valuations following the FTX collapse and higher seed round pricing.
Summary
Multicoin Capital, the Austin-based investment firm managing approximately $2.7 billion in assets, has identified Hyperliquid's HYPE token as the largest position in its liquid hedge fund. General Partner Spencer Applebaum made the disclosures in an October 19 interview with Bloomberg, in which he reaffirmed the firm's commitment to crypto investing.
The firm's stance contrasts with rival venture capital firms such as Paradigm, Framework Ventures, and Haun Ventures, which have broadened their mandates to include 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 two sectors without identifying meaningful problems to solve. He said Multicoin remains open to projects that combine blockchain infrastructure with AI applications, citing Grass, a decentralized network that supplies data infrastructure to AI companies and has received investments from Multicoin's hedge and venture funds.
On the HYPE position, Applebaum said Multicoin acquired the tokens through open market purchases rather than private allocations. He added that the firm typically holds publicly traded investments for several years. The firm did not disclose the size or value of the position.
Applebaum also addressed the pace of deployment for Multicoin's $422 million venture fund, raised in 2022. He attributed the slower pace to declining startup valuations following the collapse of FTX. He said seed rounds of roughly $3 million at $30 million valuations became common in 2023, which made it harder to deploy a fund of that size quickly.
The firm's stance contrasts with rival venture capital firms such as Paradigm, Framework Ventures, and Haun Ventures, which have broadened their mandates to include 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 two sectors without identifying meaningful problems to solve. He said Multicoin remains open to projects that combine blockchain infrastructure with AI applications, citing Grass, a decentralized network that supplies data infrastructure to AI companies and has received investments from Multicoin's hedge and venture funds.
On the HYPE position, Applebaum said Multicoin acquired the tokens through open market purchases rather than private allocations. He added that the firm typically holds publicly traded investments for several years. The firm did not disclose the size or value of the position.
Applebaum also addressed the pace of deployment for Multicoin's $422 million venture fund, raised in 2022. He attributed the slower pace to declining startup valuations following the collapse of FTX. He said seed rounds of roughly $3 million at $30 million valuations became common in 2023, which made it harder to deploy a fund of that size quickly.
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