Crypto-focused venture firm Dragonfly acquires hedge fund: Bloomberg

Amid the grueling bear market for Bitcoin, Ether and altcoins, the cryptocurrency industry is undergoing consolidation.

Cryptocurrency venture firm Dragonfly has acquired a digital asset-focused investment fund for an undisclosed amount — a move that managing partner Haseeb Qureshi said mirrors the broad consolidation trend underway in the industry. 

Bloomberg reported Monday that Dragonfly purchased MetaStable Capital, a hedge fund co-founded by Naval Ravkiant in 2014, for an undisclosed sum. In doing so, Dragonfly dropped the word “Capital” from its name and underwent a complete rebranding to reflect its growing mandate in the digital asset space.

Qureshi told Bloomberg that his firm is “committing to our crypto-native roots” at a time when traditional funds are exiting digital assets entirely due to the bear market. Despite the downtrend, Dragonfly has deepened its exposure to the crypto sector through a series of private investment rounds. In April of this year, Dragonfly closed a $650 million venture round to expand its crypto-focused portfolio. As Cointelegraph reported at the time, the raise saw participation from firms like Tiger Global, Sequoia China, Invesco and KKR.

Related: LidoDAO says no to selling $14.5M in LDO tokens to Dragonfly Capital

Prior to being acquired, MetaStable described its strategy as “long-term value investing” in the cryptocurrency sector. As of July 31, the company had over $400 million in assets under management.

See the biggest deals and more VC data from Q1, courtesy of @CointelegraphCS.

— Cointelegraph (@Cointelegraph) June 3, 2022

While the pace of crypto venture financing has slowed in recent months, 2022 has already been a record year for capital raises. According to Cointelegraph Research, crypto startups raised $14.67 billion in the second quarter, nearly identical to the $14.66 billion raised in the first three months of the year.

In recent months, startups at the intersection of Bitcoin (BTC) payments, decentralized finance and blockchain security have garnered interest from venture capitalists. Web3, metaverse and blockchain gaming projects have also seen a broad uptake from VC firms.

Related Posts

1M Aussies will enter crypto over the next 12 months — Swyftx survey

The findings come from the Annual Australian Crypto Survey, commissioned by Australian crypto exchange Swyftx. Approximately one million Australians will purchase cryptocurrency for the first time over…

NFTs In A Nutshell: A Weekly Review

There’s more NFT debates this week, with Apple policy at the forefront. Meanwhile, for one region, numbers show that NFTs are leading the charge for crypto volumes,…

US Court Authorizes IRS to Issue Summons for Crypto Investors’ Records

The Internal Revenue Service (IRS) has obtained a “court order authorizing summons for records relating to U.S. taxpayers who failed to report and pay taxes on cryptocurrency…

5 altcoins that could turn bullish if Bitcoin price stabilizes

If Bitcoin price stabilizes and begins to consolidate, these five altcoins could see strong upside. The major United States stock market indices continued their decline last week…

Bulls and Bears in Crypto: When is the Right Time to Buy or Sell?

Bulls and Bears: The bronze sculpture of a bull has long become a symbol of Wall Street – the historic center of New York’s financial district. Alternating…

Ripple and Armin van Buuren’s Armada Music to Launch an Album in the Metaverse

The blockchain company Ripple joined forces with the music integration platform Styngr and the record label Armada Music to release an exclusive album in Maladroids (a video…

Generated by Feedzy