Singapore-based crypto advisory firm BlockSpaceForce has partnered with local licensed fund manager Mainnet Capital to launch a new hedge fund dedicated to investing in crypto-linked public companies, including digital asset treasury (DAT) firms.
The vehicle is structured as a sub-fund of an unnamed umbrella variable capital company.
“We are advised against diving into specifics here due to regulations (the fund is offered only to accredited and institutional investors, so we can’t share all details publicly),” Spencer Yang, managing partner of BlockSpaceForce, investment manager at Mainnet Capital and director of the unnamed VCC, told The Block.
The fund targets what it calls “blockstocks” — public companies tied to crypto. Yang said these fall into three categories: pure-play crypto firms like Coinbase and Circle, traditional companies adding crypto exposure, and crypto-adjacent platforms such as Robinhood that integrate digital assets into existing business models. Treasury companies are just one subset, he added, noting that the fund’s strategy extends to a broader set of crypto-related equities.
“The blockstocks opportunity is unfolding in waves, for example, today it’s DATs, tomorrow it could be upcoming IPOs, or distressed infrastructure plays,” Yang said. “The biggest alpha comes from companies that engineer products with crypto, not just hold it.”
The fund is structured as evergreen and open-ended, allowing it to “continuously raise capital and pivot as new blockstock opportunities emerge from traditional finance-crypto convergence,” Yang added.
The fund’s initial investments have gone into DATs such as Kindly MD, Inc. (ticker NAKA), SharpLink Gaming Inc. (SBET), SUI Group Holdings Ltd. (SUIG), CEA Industries Inc. (BNC), and Fundamental Global Inc. (FGNX), among others. The vehicle is targeting $100 million in assets under management. Yang declined to disclose the fund’s size and backers, citing confidentiality under its private placement structure.
The fund’s framework for investing in DATs
DATs can trade at premiums to net asset value (mNAV), giving them greater ability to raise capital, buy more crypto, and increase NAV per share. But they can also trade at discounts, and many are expected to fail, some industry experts recently told The Block.
Yang said the fund uses a three-part evaluation framework for investing in DATs: Structural soundness (transparent holdings, clear treasury policy, no hidden liabilities, management alignment); Capital efficiency (targeting pre-issuance mNAV ≥1.0x, non-dilutive PIPE terms, capital deployed for crypto expansion not just operating expenses); and Strategic asymmetry (first-mover advantage, mindshare, foundation support, regulatory clarity).
“For now, we target pre-announcement PIPEs near 1.0x mNAV where the risk-reward is most attractive,” Yang said. “We look for companies that prove they can raise additional capital accretively, driving significant returns even without underlying crypto appreciation. Specifically for DATs, the key is rigorous due diligence on companies that can engineer sophisticated financial products, not just accumulate assets.”
The fund is currently focused on DATs tied to bitcoin, ether, chainlink, and solana, which Yang described as the most liquid, institutional-grade digital assets with clear long-term value.
BlockSpaceForce, founded in December 2023, advises crypto companies on strategy and growth, with a team that includes former employees of Coinbase, CoinMarketCap, Foundry, and other firms. Yang said the next 6–12 months could represent a window for “exceptional alpha” as traditional finance integrates digital assets.
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© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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