Arrington XRP Capital has finally surpassed the market value of $100 million USD thanks to an injection of $30 million USD from one of its largest partners, an important milestone that the company was already projecting for a while.
The fund, described as “a digital asset management firm in blockchain-based capital markets” is notable for being created by TechCrunch founder Michael Arrington. According to the entrepreneur, the fund “didn’t do particularly great last year, but we did better than the market. And that was a win”.
The source of the $30 million USD capital injection has not yet been disclosed and seems like we wouldn’t know who it is for the foreseeable future. Arrington has never revealed the companies behind the fund since the reveal of the fund, only indicating that Ripple was not one of them, an obvious assumption since the company is named Arrington XRP Capital and XRP is also the name of Ripple’s token. Arrington has also invested in various blockchain projects, including decentralized internet browser developer Blockstack.
New Horizons
The fresh capital enabled the company to perform its first acquisition, Australia’s ByteSize Capital, founded by brothers Ninos and Ninor Mansor. Arrington has announced that the brothers have joined Arrington XRP as partners while Experian alum Geoffrey Arone will move from being a partner to an advisory role.
Ninos Mansor expressed his appreciation for the experience that Arrington and fellow Arrington XRP partner Heather Harde brought to the table: “One thing that stood out to us as we discussed a merger was the fact that they’ve been working together for over a decade. Two tech booms give you scars and judgement that you just can’t replicate.”
Adaptive Strategy
Arrington explained that the ByteSize acquisition allows the fund to operationalize a “barbell strategy,” designed for an uncertain market, where venture investments are balanced by crypto trading.
The fund’s performance in both bear and bull markets will improve with trading but Arrington stated that the fund will emphasize venture investing. “We are seeing a new market,” he said. “It’s not 2017. It’s not 2018. Funds like ours will continue to find ways to make money in markets that are unpredictable.”
The TechCrunch founder explained that much of the loss in 2018 was not to be blamed at poor venture investments, but investing funds in crypto, rather than fiat. “These great deals we all did, it just didn’t matter,” he said. “We’d still put it right back into ETH and we’d lose it.
Arrington believes such losses can be offset by the addition of the Mansors.
“We didn’t have the DNA to do trading, but now we do with these guys,” Arrington said. In addition to experience and knowledge in trading, Arrington says the ByteSize acquisition will award the fund with proprietary market analysis tools that will come with the team.
“We are very excited to deploy these strategies at scale,” Ninor Mansor told CoinDesk, adding: “This is exactly the right time to be joining forces, when most are checking out.”
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