Bloomberg: Multicoin Capital Refuses to Expand Its Investments Into AI

• Multicoin Capital is staying focused on crypto investing, despite growing venture fund interest in artificial intelligence.
• The hedge fund’s largest position at Multicoin is HYPE — the token of Hyperliquid, a decentralized derivatives exchange.

Crypto investment firm Multicoin Capital Management does not plan to expand its investment mandate to artificial intelligence startups, despite intensifying competition for capital from AI companies. Spencer Applebaum, the firm’s general partner and co-head of venture, said this to Bloomberg.

The company manages $2.7 billion in assets and invests in cryptocurrencies and startups. At the same time, Multicoin is deploying capital from its latest venture fund, raised in 2022, more slowly, but does not plan to move beyond digital assets, the statement said.

“We believe we have an edge in crypto, and we want to stay true to it,” Applebaum said.

Crypto funds compete with AI for capital

Bloomberg noted that Multicoin is maintaining a narrow focus as other investment firms broaden their strategies. In particular, Paradigm, Framework Ventures Management, and Haun Ventures have started looking at opportunities beyond digital assets. 

According to the journalists, the investment market is being pressured by both the crypto industry’s maturation and a shrinking pool of attractive opportunities. In particular, Galaxy Research data shows that in the first half of 2026, crypto startups raised about $10 billion — roughly half of the total for all of 2025.

At the same time, raising money for new crypto venture funds is becoming more difficult. In the second quarter, investors allocated about $3.9 billion to five new funds focused on crypto assets. According to Galaxy Research, this is the smallest number of new funds in a quarter since late 2019.

Capital is also flowing into AI companies — in the third quarter, they raised about two-thirds of all startup investment in the US and Canada, the statement said.

Applebaum believes that moving into AI would strip Multicoin of the advantages it has in the crypto market. He said entrepreneurs often come to the firm because of its expertise and connections.

“For the most part, people are looking for a problem that doesn’t exist at the intersection of crypto and AI. A lot of investors are trying to force it,” he noted.

Applebaum attributed the slower pace of investing to a shift in startup valuations after the collapse of the FTX crypto exchange in 2022. According to him, in 2023 the firm began seeing seed rounds valued at around $30 million after raising roughly $3 million.

The company also sticks to a crypto-focused strategy within its hedge fund, which directly buys digital assets. The fund’s largest position is HYPE — a token linked to the Hyperliquid decentralized derivatives exchange.

Multicoin bought HYPE on the open market. Applebaum did not disclose the size of the position, but noted that the firm typically holds public investments for years, not days or weeks.

As a reminder, Multicoin Capital previously forecast that HYPE would rise above $300 by 2028.

Сообщение Bloomberg: Multicoin Capital Refuses to Expand Its Investments Into AI появились сначала на INCRYPTED.