Dragonfly Capital raises $650M amid crypto fund shakeup

Dragonfly Capital closed a $650M crypto fund focused on blockchain infrastructure and real-world assets. Reports differ on whether this is Fund III or IV, with a new $500M fund also in progress.

Dragonfly Capital has announced the close of a $650 million fund, which most sources identify as its fourth fund, despite ongoing market turbulence described as a "mass extinction event" for crypto funds. The firm remains committed to investing in foundational blockchain sectors, such as financial infrastructure, stablecoins, on-chain finance, and tokenized real-world assets. Dragonfly highlights its dedication to blockchain innovation, viewing the fund’s transparency as a key competitive edge. The leadership team combines expertise from fintech, DeFi, and traditional finance, aiming to further integrate blockchain technology into the financial sector. However, some sources clarify that the $650 million raise was for Fund III, closed in 2022, while a separate fourth fund is currently being raised with a $500 million target. Institutional limited partners have anchored the fund, enabling Dragonfly to support projects from early to late stages, with a focus on DeFi, gaming, and infrastructure.