David Bailey’s Hedge Fund Soars 640% Betting on Bitcoin-Holding Firms

210k Capital, a hedge fund co-founded by David Bailey, generated a 640% return by investing in companies that added Bitcoin to their balance sheets, according to a person familiar with the matter cited by Bloomberg. Its assets under management reached $433 million by June 30, up from its launch in late 2019.

The fund's performance came as Bitcoin climbed roughly 70% over the same period. The gap between its returns and Bitcoin's price gains highlights how equity investments in crypto-adopting companies can amplify exposure to digital asset price movements.

Bailey deployed capital across approximately a dozen public companies that acquired Bitcoin or announced plans to hold the cryptocurrency. The fund targeted small-cap and mid-cap firms that converted portions of their corporate treasuries into Bitcoin reserves.

Companies that restructured their business models around Bitcoin purchases provided the fund with outsized equity gains. The strategy focused on identifying firms converting portions of their corporate treasuries into Bitcoin holdings, capitalizing on the corporate adoption trend.

Its exceptional returns occurred during a period of strong performance across digital assets. On July 18, the total cryptocurrency market value topped $4 trillion for the first time, driven by gains in alternative cryptocurrencies and momentum from U.S. regulatory developments.

The House passed the Genius Act, a bipartisan bill establishing a federal framework for stablecoin regulation. The legislation, having already passed both the Senate and the House, now awaits President Trump’s signature and targets the $265 billion stablecoin market.

The firm launched in 2019 to target the emerging trend of corporate Bitcoin adoption. Bailey positioned the entity ahead of what he identified as a sustained shift by companies toward digital asset holdings.

Bailey previously worked as a lobbyist who helped shape Trump's cryptocurrency policy positions. He attended the White House Crypto Summit held on March 7, 2025, following President Trump’s executive order establishing a Strategic Bitcoin Reserve on March 6, 2025.