A new private equity initiative is preparing to enter the crypto scene with a $250 million war chest aimed at acquiring and rebuilding mid-sized blockchain firms.

According to a Bloomberg report, the venture will focus on companies with promising technology but weakened balance sheets after years of market turbulence.

The investment vehicle is being formed by BitMEX founder Arthur Hayes, who is pivoting from his trading exchange legacy toward strategic ownership in the digital asset space. The goal, sources say, is to purchase undervalued crypto and Web3 businesses and help them recover through operational restructuring and targeted partnerships.

The fund will reportedly serve a dual purpose – acquiring existing crypto enterprises in need of recapitalization and supporting new Web3 startups developing innovative infrastructure. By merging both acquisition and incubation strategies, the project aims to become a catalyst for industry consolidation.

Hayes has emphasized that the crypto sector has entered a phase where survival favors scale and strategic focus. “There’s immense value hidden in distressed startups,” he said in previous interviews, arguing that many companies built during the bull market can thrive again with the right leadership and capital backing.

Since stepping away from daily exchange operations at BitMEX, Hayes has increasingly turned to venture investment, backing early-stage DeFi protocols and Layer-1 networks. His latest fund – expected to launch in the first half of 2025 – marks a more structured push into long-term equity holdings.

As the digital asset industry continues to consolidate after last year’s bankruptcies and selloffs, analysts expect a wave of mergers and acquisitions among smaller firms struggling to compete. The new $250 million initiative appears poised to capitalize on exactly that – betting that the next generation of crypto leaders will emerge from today’s discounted valuations.

Source: Bloomberg