Core Macro Exposure Tactical Long-Only Themes Yield Generation Special Situations Upside Capture Tax Optimization

Core Macro Exposure

  • Our macro strategy consists of our long-term, core holdings. We own dominant digital assets to capture appreciate from migration from traditional to digital assets
  • Exposure consists of yield producing proof of stake tokens, Layer 1, smart contract protocols, Layer 2 protocols, decentralized finance networks, Web3 applications and other dominant sectors.

Tactical Long-Only Themes

  • BXE has identified certain themes that we believe will produce network monetization or value realization in the intermediate term
  • We own the “picks and shovel” base line networks which we believe will power the digital economy buildout.

Yield Generation

  • We employ multiple yield generating strategies with an aim of reducing monthly management fees
  • We seek to produce positive carry by providing liquidity, proof-of-stake, or other means of value to the digital asset ecosystem
  • We believe that by seeking to produce yield, we may be able to reduce mark-to-market price volatility and help lessen the impact of portfolio drawdowns.

Special Situations

  • BXE believes event-driven situations repeatedly arise in digital assets where investors can potentially earn attractive risk-adjusted returns
  • Similar to spin-offs, activist involvement, and other special situations in traditional corporate finance, our goal in digital asset markets is to leverage a constant flow of tradable events

Upside Capture

  • BXE seeks to gain exposure to early stage investments which we believe offer the greatest potential for asymmetric risk/reward opportunities.
  • Similar risk profile to venture capital investing, but with the ability to sell if our thesis changes

Tax Optimization

  • When applicable, we seek to strategically manage tax liabilities for our LPs to help minimize annual tax burden during periods of market contraction
  • BXE leverages long term capital gains tax rates whenever possible to reduce the overall burden of operational expenses for our LPs