Bloomberg: Multicoin Capital Refuses to Expand Investments in AI

Crypto investment firm Multicoin Capital Management does not plan to expand its investment mandate to startups in the field of artificial intelligence. This was stated to Bloomberg by the firm's general partner and co-head of the venture direction, Spencer Applebaum. The company manages $2.7 billion in assets and invests in cryptocurrencies and startups. Meanwhile, Multicoin is investing the capital of its latest venture fund, raised in 2022, at a slower pace but does not intend to go beyond digital assets. Applebaum explained this by saying that the firm has an advantage in the crypto sphere and wants to remain true to it. Bloomberg noted that Multicoin maintains a narrow specialization amid other investment companies expanding their strategies. In particular, Paradigm, Framework Ventures Management, and Haun Ventures have begun to explore opportunities beyond digital assets.

The investment market is pressured by the maturity of the crypto industry and the reduction of attractive opportunities. According to Galaxy Research, in the first half of 2026, crypto startups raised about $10 billion, which is roughly half the volume for the entire year of 2025. Raising funds for new crypto venture funds is becoming more challenging. In the second quarter, investors directed about $3.9 billion into five new funds focused on crypto assets. According to Galaxy Research, this is the lowest number of new funds per quarter since the end of 2019. Capital is also flowing to AI companies: in the third quarter, they attracted about two-thirds of all investments in startups in the US and Canada.

Applebaum believes that venturing into the AI field would deprive Multicoin of its advantages in the crypto market. According to him, entrepreneurs often turn to the firm because of its experience and connections, and many investors are trying to force the search for a problem that does not exist at the intersection of the crypto industry and AI. He explained the slower pace of investment by the change in startup valuations following the collapse of the FTX crypto exchange in 2022. In 2023, the company began to see seed rounds with valuations of about $30 million after investments when raising approximately $3 million. The company adheres to a crypto-oriented strategy within its hedge fund, which directly buys digital assets. The fund's largest position is HYPE, the token of the decentralized derivatives exchange Hyperliquid. Multicoin purchased it on the open market and typically holds public investments for years. Previously, the company forecasted HYPE's growth above $300 by 2028.