Bitcoin Proxy Strategy Fuels 640% Hedge Fund Returns
Key Takeaways
- 210k Capital, led by David Bailey, saw a 640% net return by investing in companies holding Bitcoin.
- Key investments include companies like The Smarter Web and Metaplanet, which have significantly increased their Bitcoin holdings.
210k Capital, an investment fund spearheaded by David Bailey—known for his crypto advisory role to Trump—reported a 640% net return over the past year, ending in June. This impressive growth is attributed to strategic investments in companies holding Bitcoin as a treasury asset, according to Bloomberg. As of June 30, the fund managed $433 million in assets.
Bailey, also a founder of Bitcoin Inc. and organizer of the Bitcoin 2025 event, has successfully combined advocacy with investment. He has actively supported public firms in adopting Bitcoin for their treasuries. Notably, his investment in The Smarter Web, based in the UK, has yielded returns close to 14,000% since February, as reported by Bloomberg.
Tyler Evans, Managing Partner at 210k Capital, indicated that the fund is considering another 30 investments in both existing and potential Bitcoin-related companies.
The current portfolio, with about 95% of its assets, includes companies from Japan, Canada, Sweden, Australia, the US, and the UK. Besides The Smarter Web, significant holdings feature Metaplanet and The Blockchain Group.
Metaplanet, a hotel operator turned Bitcoin accumulator often called Asia’s MicroStrategy, is among 210k Capital’s top holdings, representing approximately a quarter of its portfolio.
Initially, the fund invested $1 million in warrants, which were later converted into common stock now valued at about $106 million. Before Metaplanet's strategic pivot, 210k Capital managed only $44 million.
Looking ahead, the fund aims to tap into markets lacking spot Bitcoin ETFs, such as India, South Korea, and several countries in Southeast Asia and Latin America. Evans mentioned, "Those are all opportunities that we’re very eager on, that we hope to be able to announce a deal in soon."
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