Deus X Capital shuts down after three years in crypto investment
Deus X Capital, an investment firm focused on cryptocurrencies and financial technology, has announced that it is shutting down. Its main backers have decided to split their investment activities and focus on separate ventures, including artificial intelligence.
Representatives of Deus X Capital told CoinDesk that the firm will formally wind down on January 31, 2027. Chief Investment Officer Stuart Connolly will remain to oversee the process, while some portfolio businesses will continue operating with the involvement of existing shareholders.
Backed by the Morton family's capital, the firm entered the market in October 2023 with $1 billion in investments and available capital. Its strategy covered crypto assets, blockchain, fintech, venture capital, and institutional financial markets.
Investors split business between AI and fintech
Shane Morton will establish Darius, an investment firm focused on artificial intelligence. Owen and Jason Morton, meanwhile, are launching a company called 95, which will focus on financial markets and technology services.
Deus X Capital CEO Tim Grant will become chief executive of TensorX, an AI venture within Darius. Before joining Deus X, Grant led Galaxy Digital's business in Europe, the Middle East, and Africa.
"We want to become a significant player in the European artificial intelligence market," Grant said.
Despite the decision to shut down, Deus X Capital reported an annualized return of 36.5% since its founding. However, the firm declined to disclose its total assets under management.
Its portfolio included stakes in Galaxy Digital and asset manager Hilbert Group, as well as investments in several hedge funds. Other ventures included trading firm Alpha Lab 40, crypto broker Cor Prime, and Solstice Labs, a unit established in 2024 to develop institutional decentralized finance products.
Crypto projects reassess business models
The closure of Deus X Capital comes amid growing competition between the crypto industry and the artificial intelligence sector for investment capital. A September report by Galaxy Research noted that interest in AI is drawing investor attention away from digital assets and making fundraising more difficult for venture capital firms.
The shift in strategy is affecting not only investment firms but also blockchain infrastructure developers.
In October, Blast announced plans to shut down its Ethereum Layer 2 network after operating expenses exceeded revenue. The team concluded that the blockchain no longer had a realistic path to economic sustainability.
Earlier, we reported that Porsche ended its PIONΞERS CIRCLE Web3 project. The decision marked another example of a major brand abandoning a standalone digital asset initiative.
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