Crypto and fintech investment firm Deus X Capital will cease operations and formally unwind on January 31, 2027, as its backers pursue separate investment strategies, the company announced.
The firm, led by former Galaxy Digital executive Tim Grant, will transition under the oversight of Chief Investment Officer Stuart Connolly, while some portfolio businesses will continue operating with involvement from existing stakeholders.
The Morton family investors backing Deus X are dividing their investment focus. Shane Morton is establishing Darius, an artificial intelligence-focused firm, while Owen and Jason Morton are setting up 95 to invest in markets and fintech. Grant will become CEO of TensorX, an AI venture owned by Shane Morton within Darius.
"We want to be a prominent player in AI in Europe," Grant told CoinDesk.
The shutdown reflects broader market dynamics, as cryptocurrency faces growing competition from artificial intelligence for investor attention and capital. Galaxy Research reported in September that interest in artificial intelligence was diverting attention from digital assets, adding to venture firms' fundraising challenges.
Deus X reported generating annual returns of 36.5% since inception but declined to disclose its total capital. The family office-backed firm launched in October 2023 with $1 billion in existing investments and capital available for deployment, with a strategy spanning private equity, venture capital, and hedge fund allocations across digital assets, blockchain, fintech, and institutional capital markets.
The firm's portfolio included stakes in Galaxy Digital and asset manager Hilbert Group, as well as allocations to hedge funds. In September 2024, Deus X launched Solstice Labs to develop institutional-grade decentralized finance products. Its portfolio also included proprietary trading firm Alpha Lab 40 and crypto prime broker Cor Prime, which launched with a $100 million risk-capital commitment from Deus X.
