Stratos credits meme coins and Solana for impressive Q1 earnings and fund growth.
Venture capital firm Stratos announced a 109% net return for its liquid token fund in the first quarter, attributing the substantial gains to its investments in Solana, Nosana, and the meme coin Dogwifhat (WIF), which alone provided a 300-fold return. The total net value is over 25 times when compared to its second early-stage venture fund.
“We’re very pleased to share such high returns with our LPs, who are aligned with our investment philosophy, which is based on investing early and with conviction in high-quality projects with exceptional teams,” said Rennick Palley, founding partner at Stratos. “One aspect of our approach that may be more unique among our peer group is that we incorporate memecoins into our liquid fund portfolio.”
Palley added that meme coins have consistently outperformed other digital assets, have limited correlation to other alts sectors, and function as pure monetary assets with theoretically uncapped upside. “As an example, we started buying WIF around $0.01 in December, delivering a 300X return since then for our liquid token fund.”
Moreover, Stratos continues to explore new trends and technologies within the crypto space, with a current focus on Layer-2 solutions for the Bitcoin ecosystem. Palley remarked on the importance of scaling Bitcoin transactions in a trustless manner and enhancing the overall utility of the Bitcoin network.
The Bitcoin decentralized finance (BTCfi) ecosystem is expanding rapidly this year, registering a year-to-date growth of 265% after surpassing $1 billion in total value locked, data aggregator DefiLlama shows.