Neural population geometry shapes downstream computation. Recent empirical findings in neurobiology suggest that a hyperbolic structure underlies population activity in the hippocampus. Here we provide a theoretical framework for this phenomenon. First, we propose a plausible construction of hippocampal tuning curves that statistically induces hyperbolic geometry. Next, we establish a connection between neural decoding and associative memory by demonstrating that the Modern Hopfield Network update rule computes the minimum mean-squared-error (MMSE) estimator. Finally, we introduce a novel associative memory model defined in hyperbolic space that yields significantly larger capacity than leading models. Our results suggest that animals encode spatial information as a latent hyperbolic cognitive map, improving both memory capacity and decoding accuracy.