Arthur Hayes, co-founder of BitMEX and chief investment officer of Maelstrom, is launching Maelstrom Equity Fund I, a new private equity vehicle designed to acquire profitable, mid-sized companies serving the cryptocurrency industry. The fund is seeking to raise at least $250 million and will focus on what investors often call the crypto sector’s “picks and shovels” businesses: firms that provide infrastructure, analytics, and operational support rather than direct token exposure.
A Control-Buyout Strategy for Crypto Services
According to the report, Maelstrom Equity Fund I will be Hayes’ first external fund dedicated entirely to control-buyout transactions. Instead of backing early-stage token projects or taking directional bets on digital asset prices, the strategy centers on acquiring established companies that already generate cash flow. The plan is to purchase around six businesses operating in critical parts of the crypto ecosystem.
This approach sets the fund apart from the venture-heavy model that has dominated much of crypto investing in recent years. By targeting profitable infrastructure and support providers, Maelstrom is effectively betting on the continued institutionalization of the industry through service layers that can benefit regardless of which tokens or trading venues lead the market at any given moment.
Why “Picks and Shovels” Matter
The “picks and shovels” thesis has long appealed to investors looking for exposure to a fast-growing market without assuming the full volatility of the underlying assets. In crypto, that can include companies that build operational rails, data products, analytics platforms, compliance tools, and other core services used by exchanges, funds, custodians, and market participants.
Hayes’ team appears to be positioning the fund around that exact logic. Rather than trying to outperform through token timing or speculative venture rounds, the fund aims to own businesses that make money by supporting the broader ecosystem. For institutions and allocators that remain interested in the digital asset sector but cautious about direct market risk, this model may offer a more familiar pathway.
Cash Exits for Founders
Another notable element of the strategy is deal structure. The fund plans to offer founders relatively straightforward, cash-based exits, avoiding the more complex stock consideration or earn-out mechanisms often seen in strategic acquisitions. That could make Maelstrom an attractive buyer for founders of profitable crypto-adjacent companies who want liquidity without entering a heavily contingent or multi-year payout arrangement.
The acquisition model also suggests Maelstrom wants to create a portfolio of mature operating businesses that can later become attractive targets for larger financial and technology platforms. The report says Hayes and his partners intend to use their crypto-native network to help prepare these firms for future takeouts by major players such as Robinhood, Charles Schwab, X, or Wealthfront.
Addressing a Market Gap
The launch of the fund reflects a broader gap in the market. Traditional financial institutions and large capital allocators have often struggled to gain meaningful exposure to crypto without embracing either token volatility or venture-style risk. Direct holdings in digital assets can be difficult for some institutions to justify from a risk-management standpoint, while venture investments in crypto have produced uneven outcomes across cycles.
In that context, acquiring profitable service providers offers a middle ground. It introduces exposure to the sector’s underlying growth while leaning on the more established playbook of private equity: buy cash-flowing businesses, improve operations, and position them for strategic exits. If successful, Maelstrom Equity Fund I could become an example of how crypto investing is maturing beyond token speculation into more conventional corporate ownership strategies.
The Team Behind the Fund
Hayes will not be building the fund alone. He is joined by managing partner Akshat Shrivastava, the former head of mergers and acquisitions at BitMEX, and Adam Schlegel, who previously worked at Haveli Investments. Haveli is noted in the report for raising a record $4.5 billion debut fund, giving Schlegel experience in larger-scale traditional finance environments.
The team is also expected to expand with three additional hires from traditional finance backgrounds. That detail is significant because it suggests Maelstrom wants to blend crypto-native expertise with execution capabilities more typical of mainstream private equity and M&A firms. Such a combination may be necessary if the fund intends to source, acquire, and eventually reposition multiple operating companies for larger strategic buyers.
Still in Fundraising Mode
Maelstrom Equity Fund I was publicly announced on Oct. 17, 2025, but it remains in the fundraising stage and is not yet open to outside investors. That means the vehicle is still in its formative phase, with capital commitments, team buildout, and eventual deal execution still ahead.
Even so, the launch is notable because it highlights a shifting conversation around crypto investment strategy. In earlier cycles, capital often rushed toward token issuance, exchange growth, and speculative venture rounds. Now, with the industry more layered and institutional participation more advanced, infrastructure and operating businesses may increasingly attract buyers looking for steadier economics and clearer value-creation paths.
If Maelstrom reaches its $250 million target and completes the roughly half-dozen acquisitions it is aiming for, the fund could become a visible test case for whether private equity-style consolidation has a larger role to play in the next stage of crypto market development.