"Very good plan, but can this hedge fund make $30 billion by next year?"
Morgan Creek Digital (MCD), a North Carolina-based hedge fund manager intends to invest about $500 million in an early-stage firm that combines the power of Artificial Intelligence (AI) with blockchain and chip technologies that can unlock value from data.
Pleased to be informed that MCD is looking for sector overlap technologies such as high-performance chips that can be used for mining BTC or training AI models in data centers and even intends to expand its regional footprint through the new fund.
MCD is already in discussions with partners, institutional investors and corporate officers across several regions including Europe, United States (US), Middle East, Africa (EMEA) and Asia-Pacific (APC).
According to Mark Yusko, General Partner of MCD said that his team strongly believes that the EMEA and APAC region, especially the Middle East, will be the technology leaders of the future due to its increased investment in the AI and blockchain sectors.
Following MCD's belief that APAC countries could double investment in generative AI while EMEA could see capital injected into the same sector grow by 40%, the hedge fund manager expects they could add $30 billion in new net investment by next year.
MCD's latest announcement comes amid a rebound in the crypto venture capital market plus more active fundraising than last year especially for early-stage firms.
Although crypto venture capital inflows peaked in the first quarter of 2022, subsequent quarters saw volume decline consecutively through the first quarter of 2024 while the second quarter of 2024 numbers were seen to be better even though the number of deals fell slightly.
With price increases in crypto expected to occur this year, investors may experience fear of missing out (FOMO) and major competition that could see the number of transactions and amounts earned jump even higher.
