Key takeaways
- HYPE becomes Multicoin Capital's largest hedge fund holding
- The $2.7 billion firm maintains its crypto investment focus
- Multicoin previously outlined a $319 HYPE valuation scenario
Multicoin Capital has identified Hyperliquid's HYPE token as the largest position in its hedge fund, reinforcing its commitment to cryptocurrency investments as several competing venture firms expand into artificial intelligence and robotics.
Spencer Applebaum, Multicoin's general partner and co-head of venture investments, confirmed the position in an October 19 Bloomberg interview. The firm manages approximately $2.7 billion in assets and accumulated its HYPE holdings through public-market purchases rather than private token allocations.
Applebaum declined to disclose the size of the investment but indicated that Multicoin generally holds publicly traded crypto assets for several years. The disclosure comes as the firm's investment strategy increasingly diverges from competitors pursuing opportunities outside digital assets.
HYPE Becomes Multicoin's Largest Position After Months of Accumulation
Multicoin's Hyperliquid investment was already substantial before the latest announcement.
In its June 25 investment research, the firm disclosed that it had established a large HYPE position earlier in 2026 and continued accumulating tokens. At that time, Hyperliquid ranked among its largest liquid-fund investments.
Multicoin's investment thesis centers on Hyperliquid becoming a broader financial exchange rather than remaining exclusively a decentralized cryptocurrency derivatives platform.
The firm's earlier research modeled approximately $8 billion in annual earnings by 2028, applying a 20-times multiple to reach an estimated $160 billion valuation. Using an adjusted supply assumption of 502 million HYPE tokens, Multicoin calculated a base-case valuation exceeding $319 per token.
That figure represents a conditional investment scenario, not a guaranteed price target.
Hyperliquid's expanding derivatives business has also attracted substantial institutional interest, supported by exchange revenues and token repurchases funded through protocol fees.
The platform's HIP-3 expansion has extended its reach into perpetual markets covering equities, commodities, indices and other assets.
Multicoin Rejects AI Pivot as Rival Crypto Funds Expand
Multicoin's decision comes as crypto investment firms increasingly pursue artificial intelligence opportunities.
Paradigm, Framework Ventures and Haun Ventures have broadened their investment strategies to include AI-related businesses, robotics or other emerging technologies.
Applebaum argued that Multicoin's competitive advantage remains in digital assets and questioned attempts to establish artificial connections between crypto and AI.
However, the firm is not abandoning AI-related investments entirely. Its existing exposure includes Grass, a decentralized data infrastructure project serving artificial intelligence applications.
The distinction is between investing in AI businesses independently and backing blockchain infrastructure that could benefit from AI adoption.
Multicoin's decision also contrasts with earlier portfolio reductions by other prominent crypto investors. BitMEX co-founder Arthur Hayes previously exited his HYPE position while citing macroeconomic concerns and anticipated liquidity competition from major AI listings.
The broader institutional HYPE market has nevertheless continued attracting attention from investment managers and exchange-traded products.
Hyperliquid Investment Creates Concentrated Exposure
Multicoin's largest-position disclosure underlines its confidence in Hyperliquid but also raises questions about portfolio concentration.
The fund's position is not necessarily equivalent to a majority allocation, and its exact portfolio weight remains unknown. Without those figures, the financial exposure cannot be reliably estimated from Multicoin's $2.7 billion in total assets under management.
Other institutional investors have taken different approaches to HYPE exposure.
Bitwise previously expanded its HYPE holdings, while Nasdaq-listed Hyperliquid Strategies developed a substantial corporate treasury supported by equity financing.
