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Private equity firm 10T Holdings has raised a $750 million investment round for its first fund, aimed at targeting investments to cryptocurrency companies with the potential for rapid growth.
The company started raising money from investors late last year and has already deployed about 80% in mid- to late-stage companies in the digital asset ecosystem, according to founder Dan Tapiero, who started 10T in 2020.
Dan Tapiero is the CEO of 10T, and has over 30 years of experience in macroeconomics and investment and commodity trading, research and economics, as well as entrepreneurship.
He is a long-standing leader in the institutional investment management space.
Prior to founding 10T, Connecticut, Tapiero worked at Tiger Management, Duquesne Capital Management and SAC Capital Advisors.
“The space is growing so fast that three years ago there were only a handful of scalable companies,” said Tapiero, 53. “Today, there is a wide range”.
The burgeoning cryptocurrency market has attracted interest from across the high finance world, with companies like BlackRock Inc. adopting blockchain technology to handle complex equity derivatives.
Although the changes signal that digital currencies are becoming more popular, the 17% drop in Bitcoin yesterday (7th) underscores its dangers and the high volatility still involved.
Tapiero’s company only invests in the business equity of digital assets, not in the cryptocurrencies themselves.
It has supported 11 companies with a market value of at least $500 million, including digital exchange Kraken, blockchain loan startup Figure Technologies and hardware wallet maker Ledger SAS, according to Tapiero.
“There is huge volatility in these nascent markets because participants are trying to figure out how to price the asset,” he said. “I still think Bitcoin is going up to $400,000 or $500,000 and potentially more, but it won’t be a clear shot and we’ll see a lot of volatility along the way.”