Rebecca Cruz A new heavyweight has entered the crypto-finance arena. Singapore-based BlockSpaceForce, in partnership with licensed fund manager Mainnet Capital, has unveiled a hedge fund designed to ride the next wave of crypto-equity convergence — with an ambitious $100 million assets under management (AUM) target.
The Big Idea: Betting on “Blockstocks”
Instead of trading tokens or speculating on short-term volatility, the fund is laser-focused on public companies tied to crypto, dubbed blockstocks. These fall into three categories:
Pure-play crypto firms — Coinbase, Circle, and others directly operating in the digital asset ecosystem.
Traditional players with crypto exposure — companies adding digital assets to balance sheets or operations.
Crypto-adjacent platforms — think Robinhood, which integrates crypto into a broader business model.
Treasury companies (DATs: Digital Asset Treasury firms) are just one piece of the puzzle. According to managing partner Spencer Yang, the fund’s strategy stretches far wider — from upcoming IPOs to distressed infrastructure plays. The evergreen, open-ended design means it can pivot as new opportunities emerge.
Early Bets and the $100M Vision
The fund has already placed initial investments in Kindly MD (NAKA), SharpLink Gaming (SBET), SUI Group Holdings (SUIG), CEA Industries (BNC), and Fundamental Global (FGNX). The ambition: grow to $100 million AUM by capitalizing on the unique upside in companies engineering crypto products — not just holding assets.
Why DATs Matter
DATs can be volatile, trading at steep premiums or discounts to their modified Net Asset Value (mNAV). Some will soar, others will collapse. To manage this, the fund applies a three-part evaluation framework:
Structural soundness: Transparent holdings, strong governance, aligned management.
Capital efficiency: Focus on capital growth for crypto expansion, not bloated expenses.
Strategic asymmetry: Targeting firms with first-mover advantages, regulatory clarity, or strong ecosystem positioning.
The sweet spot? Pre-announcement PIPEs near 1.0x mNAV — where risk-reward potential is highest.
The Core Thesis
Yang is clear: “The biggest alpha comes from companies that engineer products with crypto, not just hold it.” With a focus on liquid, institutional-grade assets like bitcoin, ether, chainlink, and solana, the strategy is built on companies shaping financial products around these top-tier tokens.
Why Now?
BlockSpaceForce — founded in December 2023 and staffed by alumni from Coinbase, CoinMarketCap, and Foundry — sees the next 6–12 months as a rare window. As traditional finance merges deeper with digital assets, the stage is set for outsized returns in equities bridging both worlds.
🔥 Key Takeaway: This isn’t another “buy crypto and hope it moons” play. It’s a sophisticated bet on the convergence of Wall Street and Web3, with a structured framework to filter winners from inevitable failures. If BlockSpaceForce and Mainnet can hit their $100M AUM target, they could position themselves as one of the first movers in a new era of crypto-equity hedge funds.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
