Crypto firm Dragonfly has acquired a digital asset-focused investment fund for an undisclosed amount, a move that managing partner Haseeb Qureshi says reflects the broad trend of consolidation taking place in the sector.
Bloomberg reported Monday that Dragonfly bought 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 company is “committed to our crypto roots” at a time when traditional funds are abandoning digital assets altogether due to the bear market. Despite the downward trend, Dragonfly has deepened its exposure to the cryptocurrency sector through a series of private investment rounds. In April this year, Dragonfly closed a $650 million investment round to expand its crypto-focused portfolio. As Cointelegraph reported at the time, the surge saw the participation of firms such as Tiger Global, Sequoia China, Invesco, and KKR.
Before being acquired, MetaStable described its strategy as “long-term value investing” in the cryptocurrency sector. As of July 31, the company had more than $400 million in assets under management.
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Although the pace of crypto business funding has slowed in recent months, 2022 has already been a record year for capital raising. According to Cointelegraph Research, cryptocurrency 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 piqued the interest of venture capital investors. Web3, metaverse, and blockchain gaming projects have also seen wide acceptance by venture capital firms.
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