Market maker Wintermute has announced plans to invest approximately $1 billion in high-frequency trading and AI infrastructure over the next five years. This information was revealed by CEO Evgeny Gaevoy in an interview with Bloomberg.
The firm will fund this expenditure using its undistributed profits. Gaevoy explained that entering traditional markets demands substantial investment as Wintermute will be competing against players who have "refined their trading systems and infrastructure for decades."
Currently, non-cryptocurrency ventures account for about 10% of the firm’s revenue. By the end of 2027, the company aims to increase this share to over 50%. The average daily trading volume for Wintermute is projected to decrease to around $10 billion in 2026, down from $15 billion the previous year.
Gaevoy intends to gradually transform Wintermute from a predominantly cryptocurrency market maker into a comprehensive trading firm akin to Jane Street or Citadel Securities.
A significant focus of their investments will be on data centers that support AI and quantitative models. According to Gaevoy, modern trading strategies require not only minimal execution delays but also the capacity to continually train models on large volumes of market data. This necessitates additional computing power, storage systems, and network infrastructure.
In parallel, Wintermute is expanding its workforce. By 2027, the company plans to double the staff at its New York office, which currently employs 17 people, and increase its global headcount by approximately 40%.
Expanding Beyond Cryptocurrencies
Wintermute began its foray into traditional assets earlier this year, adding tokenized gold products PAXG and XAUT to its OTC platform in February. Clients can now conduct transactions in cryptocurrencies, stablecoins, and fiat currencies.
In March, the company’s Asian division launched 24/7 OTC trading for WTI oil CFDs, including during weekends and holidays. Management noted a growing demand for utilizing cryptocurrency infrastructure to trade traditional assets.
Additionally, in February, Wintermute analysts observed increasing competition between stocks and digital assets for retail capital. They noted that investors have started reallocating funds between these asset classes rather than simultaneously increasing positions in both.
It is worth mentioning that on August 7, the market maker entered the regulated U.S. securities market, with its affiliated entity Wintermute USA LLC registering as a broker-dealer with the SEC.