210k Capital's Bitcoin Strategy Delivers 640% Return, Assets Under Management Soar

210k Capital, a hedge fund, achieved a 640% return over the past year by investing in small companies transitioning to Bitcoin holdings. Instead of directly investing in Bitcoin or ETFs, the fund transformed unrelated companies into Bitcoin holding entities. Assets under management soared from $44 million to $433 million, with notable winners being Metaplanet and Smarter Web. The fund plans to pursue 30 Bitcoin proxy transactions globally, targeting markets without Bitcoin ETFs.

David Bailey's hedge fund, 210k Capital, has achieved remarkable success, delivering a 640% net return over the past year. The fund's unique strategy involves transforming small-cap public companies into Bitcoin holding entities, known as "Bitcoin proxies." This approach has proven to be highly effective, with assets under management soaring from $44 million to $433 million [1].

210k Capital's strategy is to invest in public companies across multiple sectors and work closely with them to adopt Bitcoin treasury strategies. One notable example is The Smarter Web Plc, a UK-based website design firm that completed an IPO on London's Aquis Stock Exchange in April. After raising £2.1 million to buy Bitcoin, its shares rocketed. 210k Capital's £780,000 stake from the pre-IPO round, including stock warrants, is now valued at nearly £110 million [1]. Similarly, Metaplanet, a hotel chain in Japan, rebranded to acquire and hold Bitcoin, with 210k Capital's $1 million worth of stock warrants now worth over $106 million [1].

The fund's success can be attributed to its ability to capitalize on the post-election surge in crypto markets driven by Donald Trump's pro-industry platform. Bailey's political influence, as co-founder of BTC Inc., has played a significant role in shaping Trump's pivot from a crypto skeptic to a vocal champion. The fund's strategy aligns with Bailey's political work, with the fund transforming companies into policy-aligned investment vehicles [1].

However, the strategy is not without risks. Companies accumulating crypto have seen shares spike, but they've also faced massive drawdowns. For instance, SharpLink Gaming shares fell 70% after a routine filing [1]. Despite these risks, 210k Capital is evaluating 30 more companies globally for Bitcoin treasury conversions, particularly in regions without access to spot Bitcoin ETFs, such as India, South Korea, and Southeast Asia [1].

References:
[1] https://www.mitrade.com/insights/news/live-news/article-3-971054-20250719