Bitcoin News Today: Hedge Fund 210k Capital Reports 640% Return Driven by Bitcoin Investments

210k Capital, a hedge fund established by entrepreneur David Bailey, has reportedly achieved significant gains from its digital asset investments. This success is partly attributed to Bailey's role in persuading former US President Donald Trump to adopt a pro-crypto policy stance, highlighting the potential impact of favorable regulation on the digital asset sector.

The fund reported a net return of 640% in the 12 months through June, primarily driven by investments in publicly traded companies that added Bitcoin (BTC) to their balance sheets. As a private entity, 210k Capital is not required to disclose its financials. However, the figures were obtained from an anonymous source, who also mentioned that the fund’s wealth stems from Bitcoin treasury investments in several countries, including the US, UK, Canada, Australia, and Sweden.

The hedge fund’s parent company, UTXO Management, reports that 210k Capital has investments in several Bitcoin-linked companies, including Strategy, Metaplanet, Moon Inc., The Smarter Web Company, The Blockchain Group, Liquid Technologies, H100, Matador, and DV8. Managing partner Tyler Evans mentioned that the firm is evaluating an additional 30 investments in so-called Bitcoin proxies — companies operating within the Bitcoin ecosystem.

Bitcoin treasury companies have flourished amid BTC’s record surge since early 2024. Bailey, a serial entrepreneur and founder of Bitcoin Magazine and BTC Inc., served as a key crypto adviser to then-candidate Trump’s presidential campaign. His influence is widely felt across the digital asset ecosystem. In May, it was reported that his Bitcoin investment firm, Nakamoto Holdings, raised $300 million and is exploring a potential public offering. The company later raised an additional $51.5 million as part of its merger with healthcare provider KindlyMD, aiming to further scale its Bitcoin treasury strategy.

Since Michael Saylor’s Strategy, formerly MicroStrategy, adopted Bitcoin as a treasury asset in August 2020, more than 150 companies have followed suit. At least 47 private firms have also disclosed holding Bitcoin on their balance sheets. Public companies currently hold 868,709 BTC on their balance sheets, while known private firms account for an additional 292,355 BTC. The strategy is paying off in 2025, as Bitcoin continues to hit record highs, most recently climbing above $123,000. However, analysts remain divided on the long-term outlook for Bitcoin treasury firms.

Venture capital company Breed recently cautioned that the success of Bitcoin treasury companies depends heavily on maintaining a market value well above their multiple on net asset value, or MNAV. For Breed, MNAV represents a company’s capitalization relative to the value of its digital assets. A sustained drop in the price of Bitcoin, for example, could lead to a decline in the company’s MNAV, further eroding its ability to raise more debt to fund its BTC purchases. Others, such as Glassnode analyst James Check, argue that corporations jumping on the Bitcoin bandwagon without a clear niche or long-term strategy will struggle to gain lasting traction.

“I think we’re already close to the ‘show me’ phase, where it will be increasingly difficult for random company X to sustain a premium and get off the ground without a serious niche,” Check wrote on X. Nevertheless, the Bitcoin adoption bandwagon is happening at a pivotal moment in the industry’s evolution. Last week, the Republican-controlled House of Representatives passed three crypto bills addressing stablecoins, market structure, and a ban on creating a central bank digital currency.