Crypto-focused venture firm Dragonfly acquires hedge fund: Bloomberg



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.

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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.

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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.

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.

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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.