Crypto-focused venture firm Dragonfly acquires hedge fund
Crypto-focused venture firm Dragonfly acquired hedge fund MetaStable Capital for an undisclosed amount
By Shashank Bhardwaj
Dragonfly, a crypto-focused venture firm, recently acquired the digital asset-focused investment fund MetaStable Capital. The move comes in the wake of the ongoing bear market and the consolidation phase the crypto industry is currently in. The acquisition had Dragonfly dropping the word ‘Capital’ from its title, rebranding itself to reflect its growing hold in the digital asset space.
MetaStable Capital was co-founded by Naval Ravikant in 2014. The managing partner of Dragonfly, Haseeb Qureshi, avered that the acquisition reflects the broad consolidation phase underway in the crypto market. The cost of the acquisition remains an undisclosed figure. Qureshi said that the venture firm was ‘committing to our crypto native roots’ despite the bear market causing an outflux of traditional names from the crypto market.
Previously the venture firm had also increased its exposure to the digital asset sector via multiple private investment rounds. It had closed a $650 million funding round in April in a bid ot extend its crypto portfolio. The funding round had seen the likes of Tiger Global, Invesco, Sequoia China, and KKR participating in the proceedings.
MetaStable had called its firm’s strategy one of ‘long-term value investing’ in the crypto sector before the acquisition. The firm had total assets management to the tune of $400 million as of July 31.
Research from Cointelegraph shows that 2022 has been a record-breaking year in terms of capital raising despite crypto venture financing having slowed down in recent years. In Q2, crypto-based startups were able ot raise $14.67 billion, the same as $14.66 worth of capital raised during the first three months of the year. The startups that gathered the most capital belonged to decentralized finance, blockchain security, and those at the intersection of Bitcoin payments. Startups from Web3, blockchain gaming, and metaverse were the other prominent sectors in the crypto space that received funding.