210k Capital, a hedge fund founded by entrepreneur David Bailey, has reportedly posted massive gains from its digital asset holdings after helping persuade 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 delivered a net return of 640% in the 12 months through June, largely driven by investments in publicly traded companies that added Bitcoin to their balance sheets, Bloomberg reported.

As a private entity, 210k Capital is not required to disclose financials, but Bloomberg obtained the figures from an anonymous source, who also said 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 (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).

Managing partner Tyler Evans told Bloomberg the firm is evaluating an additional 30 investments in so-called Bitcoin proxies — companies operating within the Bitcoin ecosystem.

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. Bloomberg describes him as the chief architect behind Trump’s pivot toward Bitcoin.

While little is publicly known about 210k Capital, Bailey’s influence is widely felt across the digital asset ecosystem. In May,  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.

Following in Strategy’s footsteps: Bitcoin treasury companies are gaining traction

Since Michael Saylor’s Strategy, formerly MicroStrategy, adopted Bitcoin as a treasury asset in August 2020, more than 150 companies have followed suit, according to industry data. At least 47 private firms have also disclosed holding Bitcoin on their balance sheets.

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.