Key Takeaways
- • Multicoin Capital has identified Hyperliquid's HYPE token as the largest position in its $2.7 billion hedge fund, according to general partner Spencer Applebaum in an October 19 Bloomberg interview.
- • Multicoin accumulated HYPE through public-market purchases rather than private token allocations, and declined to disclose the size of the position.
- • The firm's earlier June 25 research modeled roughly $8 billion in annual earnings by 2028 at a 20-times multiple, implying a $160 billion valuation and a conditional base-case value above $319 per token on 502 million adjusted supply.
- • Multicoin is declining to pivot toward AI and robotics, even as rivals Paradigm, Framework Ventures and Haun Ventures broaden into those areas.
- • The disclosure raises concentration questions, since the position's portfolio weight is unknown.
Summary
Multicoin Capital has identified Hyperliquid's HYPE token as the largest position in its hedge fund, reinforcing the firm's commitment to crypto assets while several competing venture firms expand into artificial intelligence and robotics. Spencer Applebaum, Multicoin's general partner and co-head of venture investments, confirmed the position in an October 19 Bloomberg interview. The firm manages approximately $2.7 billion in assets and accumulated its HYPE holdings through public-market purchases rather than private token allocations. Applebaum declined to disclose the size of the investment but said Multicoin generally holds publicly traded crypto assets for several years.
The position was already substantial before this announcement. In its June 25 investment research, the firm disclosed that it had established a large HYPE position earlier in 2026 and continued accumulating tokens, at which time Hyperliquid ranked among its largest liquid-fund investments. Multicoin's thesis centers on Hyperliquid becoming a broader financial exchange rather than remaining solely a decentralized crypto derivatives platform. The firm's earlier research modeled approximately $8 billion in annual earnings by 2028, applying a 20-times multiple to reach an estimated $160 billion valuation. Using an adjusted supply assumption of 502 million HYPE tokens, Multicoin calculated a base-case valuation exceeding $319 per token. The firm characterizes this as a conditional scenario rather than a price target. Hyperliquid's derivatives business has drawn institutional interest, supported by exchange revenues and token repurchases funded through protocol fees, and its HIP-3 expansion has extended into perpetual markets covering equities, commodities, indices and other assets.
Multicoin's decision contrasts with the strategies of rival crypto investors. Paradigm, Framework Ventures and Haun Ventures have broadened their mandates to include AI-related businesses, robotics or other emerging technologies. Applebaum argued that Multicoin's competitive advantage remains in digital assets and questioned attempts to draw artificial connections between crypto and AI. The firm is not abandoning AI entirely; its existing exposure includes Grass, a decentralized data infrastructure project serving AI applications, reflecting a distinction between investing in AI businesses directly and backing blockchain infrastructure that could benefit from AI adoption. The position also contrasts with earlier reductions by other prominent crypto investors. BitMEX co-founder Arthur Hayes previously exited his HYPE position, citing macroeconomic concerns and anticipated liquidity competition from major AI listings.
The disclosure underlines Multicoin's confidence in Hyperliquid but also raises questions about concentration. The position is not necessarily a majority allocation, and its exact portfolio weight is not disclosed, so the dollar exposure cannot be reliably estimated from the firm's $2.7 billion in total assets under management. Other institutional investors have taken different approaches: Bitwise previously expanded its HYPE holdings, while Nasdaq-listed Hyperliquid Strategies built a substantial corporate treasury supported by equity financing.
The position was already substantial before this announcement. In its June 25 investment research, the firm disclosed that it had established a large HYPE position earlier in 2026 and continued accumulating tokens, at which time Hyperliquid ranked among its largest liquid-fund investments. Multicoin's thesis centers on Hyperliquid becoming a broader financial exchange rather than remaining solely a decentralized crypto derivatives platform. The firm's earlier research modeled approximately $8 billion in annual earnings by 2028, applying a 20-times multiple to reach an estimated $160 billion valuation. Using an adjusted supply assumption of 502 million HYPE tokens, Multicoin calculated a base-case valuation exceeding $319 per token. The firm characterizes this as a conditional scenario rather than a price target. Hyperliquid's derivatives business has drawn institutional interest, supported by exchange revenues and token repurchases funded through protocol fees, and its HIP-3 expansion has extended into perpetual markets covering equities, commodities, indices and other assets.
Multicoin's decision contrasts with the strategies of rival crypto investors. Paradigm, Framework Ventures and Haun Ventures have broadened their mandates to include AI-related businesses, robotics or other emerging technologies. Applebaum argued that Multicoin's competitive advantage remains in digital assets and questioned attempts to draw artificial connections between crypto and AI. The firm is not abandoning AI entirely; its existing exposure includes Grass, a decentralized data infrastructure project serving AI applications, reflecting a distinction between investing in AI businesses directly and backing blockchain infrastructure that could benefit from AI adoption. The position also contrasts with earlier reductions by other prominent crypto investors. BitMEX co-founder Arthur Hayes previously exited his HYPE position, citing macroeconomic concerns and anticipated liquidity competition from major AI listings.
The disclosure underlines Multicoin's confidence in Hyperliquid but also raises questions about concentration. The position is not necessarily a majority allocation, and its exact portfolio weight is not disclosed, so the dollar exposure cannot be reliably estimated from the firm's $2.7 billion in total assets under management. Other institutional investors have taken different approaches: Bitwise previously expanded its HYPE holdings, while Nasdaq-listed Hyperliquid Strategies built a substantial corporate treasury supported by equity financing.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.