Multicoin Capital is declining to follow competing crypto venture firms into standalone AI deals, insisting its main edge stays firmly in digital assets. The $2.7 billion manager is also maintaining Hyperliquid’s HYPE token as the top holding across its hedge fund, which is being driven by strong conviction in the asset.
$2.7B Multicoin Sticks With Crypto as Rivals Shift Toward AI
Multicoin Capital is placing a unconventional wager within venture investing, choosing to remain rooted in digital assets even as vast sums of capital are being funneled into artificial intelligence startups.
In an interview with Bloomberg, the Austin-based investment manager, controlling roughly $2.7 billion, has no intention of broadening its scope to encompass dedicated AI startups, according to remarks that were shared by 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.
Such a strategy sharply sets Multicoin apart from rival firms like Paradigm, Framework Ventures, and Haun Ventures, which have expanded their mandates while significant venture capital is being absorbed by artificial intelligence developers.
Multicoin has never backed a pure-play AI startup, and Applebaum sees little justification to begin just because massive funding is being drawn to the sector.
The distinction relative to the broader venture landscape remains stark. AI developers secured nearly two-thirds of all startup funding deployed across the U.S. and Canada in the third quarter, per Crunchbase data. Meanwhile, Paradigm pulled in $1.2 billion this year for a vehicle targeting AI and robotics together with digital assets, with fresh capital being allocated across those sectors.
Fundraising Activity Begins to Slow
Multicoin’s steadfast stance persists during what is being experienced as a challenging stretch for crypto venture managers.
Galaxy Research figures revealed nearly $10 billion flowed into crypto startups in the first half of 2026, keeping the market close to last year’s tempo. However, securing commitments for new capital pools is still being found far more difficult by fund managers.
Backers allocated nearly $3.9 billion across a mere five new crypto-focused funds during the second quarter, marking the lowest launch count since late 2019. Meanwhile, Multicoin is taking extended time to deploy its $422 million vehicle raised in 2022, with capital being distributed far more cautiously.
Applebaum noted that reduced valuations following FTX’s downfall delayed deployment pace. Seed deals around 2023 were frequently about $3 million at $30 million post-money valuations, meaning extended timeline requirements were naturally created for a sizeable fund aiming to deploy capital.
Multicoin Names HYPE as Its Largest Crypto Position
The firm’s dedication to digital assets reaches well past venture capital, with additional market exposure being actively maintained across its broader operations.
Applebaum revealed that Hyperliquid’s HYPE token presently represents the top holding within Multicoin’s hedge fund. The firm built its stake directly on the open market, typically retaining public positions over multi-year horizons rather than trading them on short-term timelines, with long-term value being prioritized over quick flips.
That clarity leaves Multicoin’s strategy looking remarkably distinct, with an unmistakable direction being maintained throughout their market approach.
As competing funds soften their focus by pursuing AI, Multicoin remains convinced that specialization retains crucial value. The firm maintains that prime crypto deals will naturally be awarded to partners possessing deep industry roots, rather than managers simply chasing whichever sector currently commands peak market interest.
