Multicoin Capital Stays Focused on Crypto as Rivals Chase AI

Multicoin Capital keeps its focus on crypto while rivals move toward AI

Multicoin Capital Management is resisting the rush into artificial intelligence that has pulled in other crypto investment firms. The Austin-based company says its digital-asset experience gives it an edge in spotting promising businesses.

The firm manages $2.7 billion in assets, according to its filing with the U.S. Securities and Exchange Commission. It invests in startups and cryptocurrencies. Spencer Applebaum, a general partner and co-head of venture, said the firm is not widening its mandate to cover standalone AI businesses.

Key details on the firm and its latest fund

• Multicoin Capital is located in Austin.
• It has $2.7 billion in assets under management.
• It invests in startups and cryptocurrencies.
• Its latest venture fund was raised in 2022, and it is taking longer to deploy the money from that fund.
• The firm is not expanding its strategy to include AI-only companies, according to Applebaum.

What Applebaum says about the strategy

Applebaum said the firm is betting that its expertise in digital assets gives it an advantage in finding promising businesses. He also said Multicoin is taking longer to put its 2022 venture fund to work.

What is confirmed

The details of Multicoin's assets under management, its location, its investment focus, its 2022 venture fund, and its decision not to broaden its mandate to standalone AI businesses come from Bloomberg's report and are attributed to Applebaum and the firm's regulatory filing.

What is still unclear

The source does not say how much of the 2022 venture fund has been invested, how much remains, or when the firm expects to finish deploying it. It also does not name the rival firms that have moved into AI, nor does it give any timetable for Multicoin's future plans.

Sources

• Bloomberg Crypto