Reports indicate that 210k Capital, a fund established by David Bailey, has experienced substantial profits from its investments in digital currencies. This surge in value reportedly followed Bailey’s efforts to influence former U.S. President Donald Trump to support policies favorable to cryptocurrency, illustrating the significant impact that supportive regulatory frameworks can have on the digital asset landscape.
Over the twelve months ending in June, the fund achieved a net return of 640%. This impressive performance is largely attributed to its investments in publicly listed entities that incorporated Bitcoin (BTC) into their corporate holdings, according to a Bloomberg report.
Because 210k Capital is a private fund, it is not obligated to publicly disclose its financial results. However, Bloomberg obtained these figures from a source who wished to remain anonymous. This source also revealed that the fund’s wealth is derived from strategic Bitcoin treasury investments made across multiple nations, including the United States, the United Kingdom, Canada, Australia, and Sweden.
UTXO Management, the parent company of the hedge fund, states that 210k Capital’s portfolio includes investments in various companies associated with Bitcoin, such as Strategy (MSTR), Metaplanet (3350), Moon Inc. (1723), The Smarter Web Company (SWC), The Blockchain Group (ALTBG), Liquid Technologies (LQWD), H100 (H100), Matador (MATA), and DV8 (DV8).
Tyler Evans, a managing partner at the firm, informed Bloomberg that they are currently evaluating roughly 30 additional investments in companies they consider “Bitcoin proxies” – businesses that operate within the broader Bitcoin ecosystem.
David Bailey, an entrepreneur who founded Bitcoin Magazine and BTC Inc., was a prominent advisor on cryptocurrency matters for then-candidate Trump’s presidential bid. Bloomberg characterizes Bailey as the primary force behind Trump’s shift towards a more supportive stance on Bitcoin.
While details about 210k Capital remain relatively limited in the public domain, Bailey’s influence extends significantly throughout the cryptocurrency industry. In May, Cointelegraph reported that Nakamoto Holdings, Bailey’s Bitcoin investment company, successfully raised $300 million and is exploring a potential public offering.
The firm later secured an additional $51.5 million as part of a merger with healthcare provider KindlyMD, with the aim of further expanding its Bitcoin treasury strategy.
Related: How one Nasdaq firm raised $51.5M in 72 Hours, just to buy Bitcoin
Following in Strategy’s footsteps: Bitcoin treasury companies are gaining traction
Since Strategy, formerly known as MicroStrategy, spearheaded the adoption of Bitcoin as a treasury asset in August 2020, over 150 other companies have followed suit, according to industry statistics. Furthermore, at least 47 private businesses have publicly disclosed their holdings of Bitcoin on their balance sheets.
This approach appears to be yielding positive results in 2025, as Bitcoin continues its ascent to new all-time highs, recently surpassing $123,000. However, analysts remain divided regarding the long-term viability of Bitcoin treasury firms.
The venture capital firm Breed recently cautioned that the success of Bitcoin treasury companies is highly dependent on sustaining a market valuation significantly above their multiple on net asset value, or MNAV. According to Breed, MNAV measures a company’s market capitalization relative to the value of its digital assets.
A sustained decrease in the price of Bitcoin, for instance, could cause a reduction in a company’s MNAV, further impairing its capacity to secure additional debt to finance its BTC purchases.
Conversely, Glassnode analyst James Check posits that corporations indiscriminately embracing Bitcoin without a clear specialization or enduring strategy will struggle to achieve long-term success.
“I believe we are nearing the ‘prove it’ stage, where it will become increasingly challenging for just any company to command a premium and thrive without a well-defined niche,” Check stated on X.
Nevertheless, the proliferation of Bitcoin adoption occurs at a pivotal time in the industry’s development. Just last week, the Republican-led House of Representatives approved three pieces of cryptocurrency legislation addressing stablecoins, market framework, and the prohibition of creating a central bank digital currency.
Magazine: Bitcoin’s invisible tug-of-war between suits and cypherpunks