Wintermute plans to invest $1 billion in AI and trading infrastructure to diversify beyond cryptocurrencies and enhance trading capabilities.
Wintermute, a prominent market maker, has unveiled its intention to invest around $1 billion in high-frequency trading and AI infrastructure over the next five years, as disclosed by CEO Evgeny Gaevoy in a recent Bloomberg interview.
The investment will be financed through the company's undistributed profits. Gaevoy highlighted that competing in traditional markets requires significant capital, as Wintermute will face established players that have honed their trading systems over decades.
Currently, only about 10% of Wintermute's revenue comes from non-cryptocurrency ventures, but the firm aims to boost this percentage to over 50% by the end of 2027. The average daily trading volume is expected to drop to approximately $10 billion in 2026, down from $15 billion the previous year.
Gaevoy's vision is to transition Wintermute from a primarily cryptocurrency-focused market maker to a full-fledged trading firm, comparable to leading entities like Jane Street or Citadel Securities.
A core area of investment will be in data centers to enhance AI and quantitative trading models. Gaevoy noted that effective modern trading strategies necessitate minimal execution delays and the capability to continuously train models with extensive market data, which demands increased computing power and improved network infrastructure.
In addition to investment, Wintermute is also expanding its workforce, planning to double its New York office staff from 17 by 2027 and increase its global workforce by about 40%.
Diversification into Traditional Assets
The company has begun expanding into traditional assets, having added tokenized gold products PAXG and XAUT to its OTC platform in February. This allows clients to conduct transactions in various currencies, including cryptocurrencies, stablecoins, and fiat.
Furthermore, Wintermute's Asian division launched around-the-clock OTC trading for WTI oil CFDs in March, catering to increasing demand for crypto infrastructure in traditional asset trading. Analysts from the firm noted a rising trend of competition between stocks and digital assets for retail investment, with investors reallocating funds between these asset classes.
Notably, on August 7, Wintermute made its entry into the regulated U.S. securities market, with its affiliate Wintermute USA LLC registering as a broker-dealer with the SEC.
