According to a report from Bloomberg, a hedge fund run by Parataxis Capital Management scored a mammoth 341% return last year after making winning bets on Bitcoin and Solana, doubling the cryptocurrency market’s rebound.
The $100 million Absolute Return fund went overweight Bitcoin when crypto-friendly banks failed in 2022, fueling Bitcoin’s rise. It also bought cheap Solana tokens before their 900% surge. “Being liquid and focused on oversold assets was right,” said CEO Edward Chin.
The huge gains demolished the crypto hedge fund average, with most underperforming Bitcoin’s rally. Parataxis was among only 4% that beat Bitcoin’s return.
This year, the fund remains bullish on Bitcoin, believing it could hit $200,000 by 2025. It’s betting on new blockchains and regulation-driven stablecoin projects. The US Bitcoin ETF launch and upcoming mining reward halving add upside.
Parataxis also runs a mining business seeking an IPO after doubling capacity. With a 20% fee on 2021’s341% return, the white-hot performance could attract more investors. But its one-year lockup means missing out on 2022’s gains.
Also Read: Massive Bitcoin Transfers Hit Coinbase Institutional
