Multicoin Capital Management does not plan to broaden its investment mandate to artificial intelligence startups, general partner and co-head of venture Spencer Applebaum told Bloomberg in an Oct. 19, 2026, report. The decision keeps the $2.7 billion investment firm focused on cryptocurrencies and crypto startups as AI companies compete for a growing share of venture capital.

Multicoin is deploying capital from its latest venture fund, raised in 2022, more slowly but does not plan to move beyond digital assets.

“We believe we have an edge in crypto, and we want to stay true to it,” Applebaum said.

Crypto funds compete with AI for capital

Multicoin is retaining its narrow mandate while Paradigm, Framework Ventures Management and Haun Ventures have begun considering opportunities beyond digital assets, Bloomberg reported.

The crypto investment market is facing pressure from the industry’s maturation and a shrinking pool of attractive opportunities. Crypto startups raised about $10 billion in the first half of 2026, roughly half the amount raised during all of 2025, according to Galaxy Research data cited by Bloomberg.

Raising money for new crypto venture funds has also become more difficult. Investors allocated about $3.9 billion to five new crypto-focused funds in the second quarter of 2026. Galaxy Research said that was the smallest number of new funds recorded in a quarter since late 2019.

AI companies, meanwhile, raised about two-thirds of all startup investment in the United States and Canada during the third quarter, Bloomberg reported.

Applebaum said expanding into AI would erode Multicoin’s advantages in the crypto market. Entrepreneurs often approach the firm because of its expertise and connections, he said.

“For the most part, people are looking for a problem that doesn’t exist at the intersection of crypto and AI. A lot of investors are trying to force it,” he noted.

Applebaum attributed Multicoin’s slower investment pace to a shift in startup valuations following the 2022 collapse of crypto exchange FTX. He said the firm began seeing seed rounds in 2023 valued at about $30 million after raising roughly $3 million.

HYPE leads hedge fund positions

Multicoin also maintains a crypto-focused strategy in its hedge fund, which buys digital assets directly. Its largest position is HYPE, a token linked to decentralized derivatives exchange Hyperliquid.

The firm bought HYPE on the open market. Applebaum did not disclose the size of the position but said Multicoin typically holds public investments for years rather than days or weeks.

Multicoin Capital previously forecast that HYPE would rise above $300 by 2028.

Source: Incrypted