Multicoin Maintains Focus on Cryptocurrencies, Not Planning to Invest in AI

Investment firm Multicoin Capital, managing $2.7 billion in assets, has decided not to expand investments in artificial intelligence and robotics, despite growing interest from competitors. According to general partner and co-head of the venture division Spencer Applebaum, this decision is driven by the desire to focus on the area where the firm has the greatest expertise. He noted that "some investors are trying to artificially find intersections between cryptocurrencies and AI, offering solutions for non-existent problems."

Multicoin's position contrasts with the plans of other major funds that have begun to move beyond the traditional crypto industry. In May, Haun Ventures raised $1 billion and announced intentions to invest in companies at the intersection of finance, artificial intelligence, and alternative assets. In June, Framework Ventures closed its fourth fund at $400 million, directing funds to projects in AI, robotics, energy, and financial technologies. In July, Paradigm raised $1.2 billion for investments including AI and robotics.

Despite the refusal to pursue independent AI projects, Multicoin continues to invest in blockchain infrastructure serving the artificial intelligence industry. In September, the company announced investments in the DePIN platform Grass – a decentralized physical infrastructure that collects publicly available information from the internet. Users provide spare bandwidth, and AI developers receive data for training neural networks. Multicoin considers Grass an example of practical application of cryptocurrency mechanisms.

The firm is also increasing its positions in crypto assets. According to Applebaum, the company's hedge fund's largest investment is HYPE – the native token of the decentralized exchange Hyperliquid; he did not disclose the exact size of the position. Multicoin is confident that the platform can become a universal venue for trading digital and traditional financial assets. In the base scenario, the company's analysts projected Hyperliquid's annual profit growth to $8 billion by 2028 – with a 20x multiplier, this corresponds to a HYPE price of about $319. At the time of writing, the asset is trading around $78.5.

In June, open interest on Hyperliquid exceeded $10 billion, and according to a Talos report, the platform ranked third among the largest venues for trading perpetual futures. One of the growth factors was the launch of markets for stocks, commodities, and indices.