Bitcoin hedge fund profits surge 640% as regulation turns favorable
The crypto market’s transformation under pro-Bitcoin U.S. policy is creating new winners — and David Bailey stands out. His hedge fund, 210k Capital, reportedly delivered a 640% net return in the 12 months through June 2025, fueled by a bold Bitcoin treasury strategy and favorable shifts in regulatory climate.
Bailey, a longtime crypto entrepreneur and founder of BTC Inc., played a pivotal role in converting former President Donald Trump from a crypto skeptic to a vocal blockchain advocate. That political pivot appears to have paid off handsomely — not just in influence, but in actual wealth generation.
Bitcoin-backed balance sheets drive hedge fund success
According to private disclosures, 210k Capital’s profits stemmed primarily from investments in companies that added Bitcoin (BTC) to their corporate treasuries. These firms include MicroStrategy (MSTR), Metaplanet, Moon Inc., The Blockchain Group, and Liquid Technologies, among others.
The fund’s parent company, UTXO Management, also revealed it is exploring 30+ new investments in “Bitcoin proxy” firms — those operating closely within the Bitcoin ecosystem.
Nakamoto Holdings and the $300M public offering plan
Bailey’s influence extends beyond hedge funds. His Bitcoin-focused investment firm Nakamoto Holdings recently raised $300 million, followed by another $51.5 million during a merger with healthcare firm KindlyMD. The goal? To scale BTC treasury operations and possibly go public in the near future.
Public firms now hold nearly 870K BTC
Since Michael Saylor’s Bitcoin-as-treasury move in 2020, over 150 public and private firms have followed suit. Current data shows:
- 868,709 BTC held by public companies
- 292,355 BTC held by private firms
- https://blockto.io/michael-saylors-strategy-buys-740m-in-bitcoin-bringing-holdings-to-72b/
This wave of adoption underscores Bitcoin’s shift from speculative asset to corporate treasury reserve — a transformation Bailey helped engineer.
Risks and rewards in Bitcoin treasury strategy
However, the strategy isn’t without risk. Analysts warn that companies relying heavily on BTC’s market value must maintain a strong multiple on net asset value (MNAV) to raise capital. A steep Bitcoin correction could threaten their financial agility.
Still, Bailey’s hedge fund success shows that timing, conviction, and regulatory clarity can fuel explosive returns.
With U.S. political support for crypto rising and BTC adoption expanding, treasury-based strategies may shape the next financial era.