Multicoin Capital Backs HYPE as Its Largest Hedge Fund Position

Spencer Applebaum, general partner at Multicoin, confirmed the status of the HYPE position during a recent interview. He noted that the firm typically holds publicly traded assets for several years, following a strategy of accumulating exposure on public markets. This confirmation aligns with the firm’s June research, which first identified HYPE as a core asset in its liquid fund.

Multicoin’s investment thesis for the protocol rests on a valuation model projecting significant earnings by 2028. The firm’s base case estimates a price of $319 per token, predicated on an $8 billion annual earnings forecast and a 20-times multiple. While the firm acknowledges risks—including regulatory hurdles, governance challenges, and potential bad debt—it continues to view Hyperliquid as a primary vehicle for expanding decentralized finance into broader commodity and equity markets.

Market observers have closely tracked Multicoin’s activity through wallet transfers, noting millions of HYPE tokens moved to Coinbase Prime since late July. However, these movements do not confirm divestment, as institutional custody services often serve as clearinghouses for broader portfolio management. Unlike peers such as Paradigm, which recently expanded its mandate to include robotics and AI, Multicoin remains skeptical of artificial attempts to bridge blockchain with unrelated technology sectors.