Multicoin Capital Management has chosen to keep its attention strictly on cryptocurrency projects, passing on the artificial intelligence wave drawing many competing venture capital firms. Operating out of Austin, the $2.7 billion asset management firm remains dedicated to funding digital assets and crypto startups.
This steadfast stance occurs as AI pulls in massive venture capital, while cryptocurrency investment companies confront a tough fundraising climate.
Multicoin Capital Stays Focused on Crypto Instead of AI
In an October 19 interview with Bloomberg, Multicoin general partner and venture co-head Spencer Applebaum stated that the firm has no intention of branching out into standalone artificial intelligence ventures.
“We believe we have an edge in crypto, and we want to stay true to it,” Applebaum remarked. Having joined the company in 2018, he emphasized that their established connections with crypto founders give them a distinct advantage in spotting viable investments.
Applebaum also expressed skepticism regarding attempts to merge the two tech sectors without a genuine commercial justification. “For the most part, people are in search of a problem that doesn’t exist at the intersection of crypto and AI,” he noted. “A lot of investors are trying to force it.”
Rival Crypto Venture Firms Expand Into AI
Conversely, several competing digital asset managers have broadened their scopes. In July, Paradigm secured $1.2 billion for a new fund targeting crypto, AI, and robotics companies. Additional strategy expansions have been undertaken by Framework Ventures and Haun Ventures.
Data from Crunchbase indicates that startups across the U.S. and Canada pulled in $92 billion in the third quarter of 2026. Artificial intelligence ventures claimed roughly $61 billion of that figure, making up nearly two-thirds of the overall total.
While these statistics highlight the expanding market share captured by AI investments, they do not verify the amount of capital shifting directly out of crypto and into AI. Applebaum confirmed that Multicoin has never backed an independent AI business.
Crypto Fundraising Slows as Multicoin Deploys 2022 Fund
Figures from Galaxy Research show that cryptocurrency startups brought in about $10 billion in the first half of 2026, roughly matching the pace seen throughout 2025. Still, second-quarter capital commitments reached approximately $3.9 billion spread over just five newly established crypto venture funds.
Multicoin is currently working through its $422 million venture fund secured back in 2022. Applebaum attributed the extended deployment timeline to more modest funding rounds and deflated company valuations in the wake of the FTX exchange collapse.
He noted that seed rounds in 2023 typically brought in about $3 million at post-money valuations near $30 million. Deploying a fund worth hundreds of millions requires significantly more time when dealing with these scaled-down transactions.
Hyperliquid’s HYPE Leads Multicoin Hedge Fund Holdings
Aside from venture investments, Multicoin holds direct digital asset positions via its hedge fund. Applebaum pointed to HYPE—the native token of the decentralized derivatives exchange Hyperliquid—as the portfolio’s top holding.
Rather than participating in a private token sale, the firm acquired its HYPE tokens through open-market purchases. Although Applebaum withheld the specific size of the holding, he mentioned that Multicoin typically maintains publicly traded positions over multi-year horizons instead of turning them over quickly.
Industry perspectives regarding the connection between AI and cryptocurrency remain divided. At the Token2049 event in Singapore on October 7, Eric Trump argued that the advancement of AI could serve as a catalyst for 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 stated. While his remarks connected AI development to a surge in future cryptocurrency usage, Multicoin remains committed to a strategy centered exclusively on the digital asset space.
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