A new U.S.-based hedge fund, Stillcore Capital, has entered the decentralized AI (DeAI) race with plans to initially raise between $25 million and $50 million, setting its sights on acquiring 1% of Bittensor’s circulating $TAO supply.
Launched by entrepreneur and podcaster Mark Jeffrey, tech investor Jason Calacanis, and former private equity executive Rob Greer, the fund is structured as an open-ended 506(c) vehicle, enabling perpetual capital raises and active network participation. Unlike traditional closed-end crypto funds, Stillcore’s evergreen model positions it as a long-term player in an ecosystem still in its formative stages.
The strategy centers on $TAO and alpha tokens from Bittensor’s specialized subnets, signaling confidence in open-source AI networks as an alternative to centralized incumbents like OpenAI.
“We believe decentralized intelligence is the next frontier,” Jeffrey said in a launch note, framing the initiative as a bridge between Wall Street capital and Web3-native AI infrastructure.
Bittensor’s Growing Institutional Appeal
Bittensor, built on a 2021 whitepaper, runs a peer-to-peer protocol where miners contribute AI models or data and validators judge their quality—earning $TAO rewards across subnets specializing in tasks like inference, financial predictions, and language modeling.
Its tokenomics, modeled after Bitcoin’s incentive design, have already caught the eye of venture capitalists and crypto veterans. Barry Silbert, founder of Digital Currency Group, recently called Bittensor “the most exciting development since Bitcoin,” launching his own Yuma Group to invest in the space.
Stillcore’s entry marks one of the first hedge funds formed explicitly to build exposure to Bittensor, further cementing institutional interest in DeAI at a time when the broader crypto market faces heightened regulatory oversight and volatility.
Sentiment on X
The fund’s announcement ignited discussion across X (formerly Twitter). Sentiment leaned 85% positive, according to engagement data, with many subnet builders and $TAO holders hailing Stillcore as a “powerhouse milestone” and validation for Bittensor’s disruptive potential. Some predicted a “100x” return in five years.
Stillcore’s celebrity backing via Calacanis, known for his influence on the All-In Podcast, may amplify visibility to a broader base of traditional finance investors including Calacanis’s former podcast partner, David Sacks, who is now President Trump’s Crypto and AI Czar.
The Calculated Gamble
Stillcore’s bet underscores the promise of decentralized AI. If successful, the fund could accelerate Bittensor’s adoption and attract mainstream capital into DeAI. The entry of this hedge fund puts Bittensor back in the spotlight as one of the few crypto projects straddling both Wall Street money and open-source AI innovation.
Be the first to comment