Multicoin Capital has identified Hyperliquid’s HYPE token as the largest position in its hedge fund, reinforcing its dedication to cryptocurrency investments despite a challenging competitive landscape. The disclosure comes as several major venture capital firms shift their focus toward artificial intelligence and robotics.
HYPE emerges as dominant holding after consistent accumulation
Spencer Applebaum, general partner and co-head of venture investments at Multicoin Capital, confirmed the firm’s significant HYPE holdings in an interview with Bloomberg on October 19. Multicoin Capital oversees approximately $2.7 billion in assets, and has steadily accumulated its HYPE stake on the public market, rather than through private token distributions.
The firm revealed in June that it began acquiring a sizable HYPE position earlier in 2026 and continued adding to its allocation in subsequent months. At that point, Hyperliquid had already become one of Multicoin’s largest investments in the liquid portion of its fund.
Multicoin’s core investment thesis envisions Hyperliquid evolving from a decentralized derivatives platform into a broader financial exchange. The company projected in previous research that Hyperliquid could generate $8 billion in annual earnings by 2028, applying a 20-times multiple for a theoretical valuation of $160 billion. With a revised supply estimate of 502 million HYPE tokens, Multicoin calculated a base-case price above $319 per token.
Multicoin’s forecasts rely on specific assumptions, and the research defines the $319 figure as a conditional scenario rather than a guaranteed price target.
Institutional interest in Hyperliquid continues to grow, underpinned by exchange revenue and ongoing token purchases funded from protocol fees. The exchange has also expanded operations, notably rolling out HIP-3 to support perpetual markets tied to equities, commodities, indices and additional asset classes.
Multicoin defends crypto-first focus amid AI sector expansion
The decision to double down on HYPE comes as rival crypto-focused investors explore artificial intelligence and robotics. Firms such as Paradigm, Framework Ventures and Haun Ventures have broadened their mandates to include technologies beyond digital assets.
Applebaum stated that Multicoin’s strategic edge lies within digital assets, and questioned the narrative linking crypto with AI. However, the firm maintains some interest in projects positioned at the intersection of blockchain and AI, such as Grass, a decentralized data infrastructure for AI applications.
This approach contrasts with a full pivot to AI businesses and instead favors blockchain infrastructure that could benefit from increased AI adoption. While some well-known investors have reduced exposure to HYPE, Multicoin is maintaining and expanding its position. For example, BitMEX co-founder Arthur Hayes previously exited his HYPE stake, citing macroeconomic risks and potential competition from large-scale AI projects entering crypto markets.
Despite some portfolio trimming by previous investors, institutional interest in HYPE remains strong, with growing attention from fund managers and exchange-traded products.
Managing concentrated risk and portfolio exposure
Multicoin has not disclosed the precise portfolio weight of its HYPE allocation, making it difficult to determine exactly how concentrated the fund’s exposure is based on its $2.7 billion total assets under management.
Other investment managers have taken various approaches to HYPE exposure. Bitwise recently increased its own holdings, while Hyperliquid Strategies, a Nasdaq-listed entity, has built up a substantial corporate treasury supported by equity financing.
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