Silicon Valley VCs backed Hedge Fund MetaStable Capital. Consolidation is beginning to happen in the crypto sector as a result of shakeout.
Dragonfly, a digital-asset venture capital company, announced it had acquired MetaStable Capital and underwent a rebranding.
According to Haseeb Qureshi (Managing Partner at Dragonfly), the acquisition occurs as the digital-asset market consolidates. The terms of the deal were not disclosed. Under a new logo, Dragonfly added firm to its name.
Qureshi, who was a MetaStable partner, stated in a Telegram message that the bear market had caused many traditional funds and cross-border funds to leave the crypto market. “We are the opposite. We’re going deeper and committing ourselves to our crypto-native roots.”
After a difficult rout caused by tightening monetary policies that resulted in spectacular leveraged meltdowns, the crypto market is now regaining its footing. As part of this shakeout, mergers and acquisitions are increasing.
Leon Li, founder of crypto exchange Huobi, is seeking to sell his majority stake. Digital currency platform Crypto.com has recently announced purchases in South Korea.
Naval Ravikant co-founded MetaStable in 2014. The fund had more than $400 million under management as of July 31. It was an early investor in many prominent digital-asset projects, such as the Ethereum blockchain. Venture capital firms such as Andreessen Horowitz and Sequoia and Union Square Ventures backed the fund, as well as venture capital firms like Founders Fund.
Qureshi stated that Dragonfly is now much bigger than it was when it started. “The crypto industry is also much larger,” Qureshi added. “The traditional VCs will return eventually, but the space has moved even further by then.
According to the most recent public records, Dragonfly had more than $3 billion in regulatory assets under its control. General partner Tom Schmidt stated that the new brand represents Dragonfly’s “cyberpunk and hacker-first roots”.