210k Capital’s 640% Return: How a Hedge Fund Is Shaking Up Bitcoin Investing

210k Capital, the hedge fund launched by entrepreneur David Bailey, has made headlines with a staggering 640% net return over the last 12 months—demonstrating the explosive power of the Bitcoin treasury trend.

According to reports, 210k Capital’s record-breaking performance was fueled by strategic investments in public companies that have added Bitcoin to their balance sheets.

The sharp surge in BTC price—recently topping $123,000—further turbocharged returns. Though 210k Capital, as a private entity, keeps its financials confidential, sources reveal its profits primarily stem from Bitcoin treasury holdings spread across 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 Techonlogies, H100, Matador, and DV8.

Managing partner Tyler Evans revealed that 210k Capital is currently reviewing as many as 30 additional potential investments in so-called “Bitcoin proxies”- companies that operate within the Bitcoin ecosystem.

The Rise of the Bitcoin

David Bailey’s reach goes far beyond investing. As founder of Bitcoin Magazine and BTC Inc., Bailey became a central adviser to Donald Trump’s presidential campaign, reportedly acting as the architect behind Trump’s newfound pro-Bitcoin stance.

This regulatory pivot underscores how favorable policies can help catalyze the next wave of digital asset adoption and price gains.

Since Michael Saylor's Strategy added Bitcoin to its treasury in 2020, over 150 firms have followed suit.

At least 47 private firms have also disclosed holding Bitcoin on their balance sheets.

Bitcoin treasury companies have flourished during the market’s record bull run since early 2024, validating a trend that shows no signs of slowing.

While the Bitcoin treasury playbook has delivered blockbuster returns for now, industry voices urge caution:

Venture capital firm Breed warns these companies must keep their market cap well above their “multiple on net asset value” (MNAV) to stay healthy.

A significant Bitcoin price drop could quickly erode this advantage, making it tougher to raise additional capital.

Analysts like Glassnode’s James Check think only companies with a distinct niche or robust strategy will continue to command a premium, as the market matures from “hype” to a “show me” phase.

Policy Shifts Provide Extra Fuel

The timing is pivotal: just last week, the House of Representatives passed major crypto legislation covering stablecoins, market structure, and a ban on central bank digital currencies—strengthening the tailwinds for digital asset companies.

For crypto investors and industry watchers, 210k Capital’s meteoric rise serves as both a blueprint and a cautionary tale for the powerful—yet fragile—fusion of corporate Bitcoin adoption and regulatory change.