Morgan Creek Digital Aims to Raise $500M for AI and Blockchain Fund with Bitcoin Mining Focus

• Morgan Creek Digital aims to raise approximately $500 million for a new fund directed towards investments in artificial intelligence, blockchain technologies, chips, and data ventures.
• The new fund will be focusing on early-stage companies that integrate AI with blockchain and leverage cutting-edge chips for data opportunities.
• A statement from Morgan Creek Digital highlighted their intent to connect with top-tier CEOs and partners across various global regions.

North Carolina-based hedge fund Morgan Creek Digital is set to launch a $500 million fund targeting AI, blockchain, and data innovations, with a special focus on regions like EMEA and APAC.

Morgan Creek’s Ambitious $500M Fundraising Initiative

Morgan Creek Digital has officially announced its plans to raise $500 million for a new venture fund dedicated to sectors at the intersection of artificial intelligence and blockchain technologies. This fund, according to their latest press release, will be aimed at early-stage firms harnessing AI combined with blockchain applications and specialized chips to enhance data utilization and value creation.

Targeting High-Performance Technologies

One of the key focuses of Morgan Creek’s new fund is to identify and invest in high-performance chips, which can have dual applications in both Bitcoin mining and training AI models within data centers. The hedge fund is already in advanced discussions with potential partners and investors, including sovereign and institutional investors, corporate executives, and technology leaders from Europe, the US, the Middle East, Africa, and the Asia-Pacific region.

Strategic Regional Expansion

Mark Yusko, General Partner at Morgan Creek Digital, emphasized the significance of expanding their reach into international markets as part of their strategy. Yusko highlighted that the EMEA and APAC regions, particularly the Middle East, are poised to become leaders in technology investments, especially in AI and blockchain domains. This regional focus is driven by the rising levels of funding and interest seen in these areas.

Investment Growth Projections

Morgan Creek Digital has projected that APAC countries could see their investments in generative AI triple, while capital flows into similar sectors in EMEA could increase by 40%. These expansions are expected to contribute an additional $30 billion in new net investments by the next year. Since its inception, Morgan Creek has already raised over $440 million, underscoring its capability to attract substantial investment.

Revitalization of the Crypto VC Market

The announcement of Morgan Creek’s new fund comes during a period of resurgence in the crypto venture capital market. Recent reports from Galaxy Research indicate that the first half of 2024 has experienced significant fundraising activities, particularly for early-stage startups. The first quarter alone saw $2.5 billion raised across 603 deals, while the second quarter attracted $3.2 billion despite a slight drop in the number of deals.

Market Sentiments and Future Outlook

With the anticipated bull market and a growing investor sentiment driven by fear of missing out (FOMO), the crypto VC market is expected to see even higher surges in fundraising activities. Investors are positioning themselves to capitalize on emerging opportunities, reflected in the increased competition and deal volumes within the sector.

Conclusion

Morgan Creek Digital’s $500 million fund underscores the firm’s strategic vision to drive innovations at the convergence of AI and blockchain technologies. By focusing on early-stage investments in high-performance chips and data opportunities, and by expanding its regional footprint, Morgan Creek is setting the stage for significant technological advancements and investment growth in these frontier markets. Investors will likely continue to watch these developments closely as the crypto and technology landscapes evolve.