Multicoin Capital says Hyperliquid (@HyperliquidX) $HYPE is now the largest position in its hedge fund, underscoring the firm's commitment to digital assets as venture rivals move into artificial intelligence.

General partner Spencer Applebaum said the firm acquired the holding through public markets. FXStreet, citing Bloomberg, reported that Applebaum, who is also co-head of venture investments, declined to disclose the size of the position.

Multicoin stays focused on crypto

The firm manages about $2.7 billion. Speaking to Bloomberg, Applebaum said Multicoin does not plan to widen its mandate to include pure-play AI companies. Bitcoin(.)com News quoted him as saying: "We believe we have an edge in crypto, and we want to stay true to it."

That stance separates Multicoin from some peers. According to Bitcoin(.)com News, Paradigm, Framework Ventures and Haun Ventures have broadened their investment strategies as AI absorbs more venture capital.

Multicoin is not shutting out AI entirely where it intersects with crypto. TokenPost reported that the firm has invested through its hedge and venture funds in Grass, a decentralized bandwidth network used by AI labs.

Venture fund deployment and HYPE thesis

Applebaum also addressed the pace of the firm's venture fund. TokenPost reported that Multicoin raised a $422 million venture fund in 2022 and has deployed it gradually as startup valuations fell after the collapse of FTX.

The HYPE position is not a new theme for the firm. Coin Edition noted that Multicoin disclosed significant HYPE exposure in June, when its valuation model projected a potential price of $319 by 2028 under base-case assumptions. The outlet added that the forecast depends on trading growth, market share, token supply and regulatory developments.

Applebaum said the firm typically holds public investments for years rather than trading them over short periods, according to Bitcoin(.)com News. That suggests the HYPE position reflects a long-term view rather than a short-term trade, though the size of the holding remains undisclosed.

Sources:

FXStreet: Multicoin's top holding is Hyperliquid
Bitcoin(.)com News: Multicoin shuns AI push, keeps HYPE as its largest crypto bet
TokenPost: Multicoin Capital rules out pure AI investments