Multicoin Capital is sitting on a loss exceeding $40 million on a large AAVE position it accumulated through Galaxy Digital's over-the-counter desk, according to on-chain data. The venture firm appears to be offloading tokens after the cryptocurrency's value slumped 55%.
How the position was built
Between October 13 and November 25, 2025, Multicoin Capital received 338,005 AAVE tokens from a Galaxy Digital OTC desk. That's a substantial stake, likely acquired as a single block trade. The timing suggests the firm built the position just before AAVE's price began to slide.
The sell-off begins
On-chain data now shows Multicoin Capital is selling those AAVE tokens. The 55% drawdown means they're realizing losses on at least part of the position. The exact amount sold so far isn't public, but the pattern is clear: the firm is cutting its exposure.
Multicoin Capital is a well-known crypto venture fund with a track record of long-term bets. A $40 million unrealized loss on a single position is significant, even for a fund of its size. It's unclear whether this will affect their broader portfolio strategy or force them to raise capital elsewhere.
Galaxy Digital's OTC desk facilitated the original trade, but it's not known if Galaxy is involved in the sell-off. OTC desks often handle large block trades to minimize market impact.
The question now is how much more Multicoin will sell and at what price. With AAVE still under pressure, the firm's next moves could influence market sentiment around the token. No further details have been released by either party.
