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Crypto Venture Firm Dragonfly Acquires Hedge Fund MetaStable

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by Bhushan Akolkar · 2 min read
Crypto Venture Firm Dragonfly Acquires Hedge Fund MetaStable
Photo: Unsplash

The deal took place for an undisclosed amount. Hedge fund MetaStable had the backing of some of the top venture capital firms.

On Monday, August 15, Dragonfly – the cryptocurrency venture capital firm announced the acquisition of one of the oldest crypto hedge funds MetaStable. However, the details of the amount paid remain under wraps.

Dragonfly managing partner Haseeb Qureshi said that the deal mirrors the broader consolidation in the crypto space. Popular investor Naval Ravikant found hedgefund MetaStable Capital back in 2014. However, later under the company’s new logo, the company dropped “Capital” from its name. Qureshi, who was also a former partner at MetaStable told Bloomberg:

“The bear market has caused a lot of traditional funds and crossover funds to exit the crypto market. We’re the opposite: we’re going deeper, and committing to our crypto-native roots.”

After a brutal first half of 2021, the crypto market is once again in a revival mode. Investments in the crypto space also dried up significantly since the beginning of this year. In such a situation, fresh mergers and acquisitions have come as a welcome move for the crypto community.

About Crypto Hedge Fund MetaStable

As said, MetaStable was founded eight years back and as of July 31, it had more than $400 million in assets under management. This fund was also an early investor in some very well-known cryptocurrency projects such as the Ethereum blockchain.

Besides, MetaStable was also backed by some of the top venture capital firms such as Sequoia Capital, Andreessen Horowitz, Founders Fund, and Union Square Ventures. Speaking on the matter, Qureshi said:

“Dragonfly is a lot bigger now than when it first started, and so is the crypto industry. The traditional VCs will be back eventually, but the space will have moved on even further by then, and so will we.”

According to the latest records, the total assets under the management of Dragonfly were more than a whopping $3 billion. In a recent statement, the company’s general partner Tom Schmidt said that new brand represents the firm’s “cyberpunk, hacker-first roots”.

As said that the investment sentiment in the crypto space has been reviving a bit after a major market crash this year. However, good companies have been finding the right partners. For e.g. digital currency platform Crypto.com recently announced the acquisition of crypto exchange Huobi in South Korea.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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