Sam Altman-Backed Crypto Startup Looks To Secure $100 Million For Bitcoin Private Credit Fund
08 Dezember 2023 - 2:00AM
NEWSBTC
Meanwhile Advisors, a crypto startup backed by the American
entrepreneur Sam Altman, has announced plans to raise $100 million
for a Bitcoin (BTC) private credit fund. The fund, known as
Meanwhile Private Credit Fund aims to provide institutional
investors with access to BTC while targeting an additional 5% yield
denominated in the cryptocurrency. Bitcoin Rally Sparks Launch Of
Meanwhile Advisors Fund According to a report by The Block,
Meanwhile Advisors has launched the fund as Bitcoin continues its
recent rally, with prices currently falling from the $44,000 level
down to the $43,200 mark. Zac Townsend, the co-founder and
CEO of Meanwhile Group, stated that the belief is that Bitcoin will
appreciate significantly in the future, and the fund offers
investors a unique opportunity to increase their exposure to
digital assets. Related Reading: Solana Ascending Triangle
Formation Anticipates Price Surge, $90 Target In Sight The
Meanwhile BTC Private Credit Fund adopts a single-close, closed-end
structure. Participating limited partners (LPs) will contribute US
dollars to the fund, which will be immediately converted to Bitcoin
following the single close. Meanwhile will lend this BTC to
borrowers to generate the targeted 5% return in Bitcoin. This
structure allows LPs to accumulate more Bitcoin if its price
appreciates during the fund’s lifecycle without requiring
additional principal investment. Townsend mentioned that the
minimum investment amount per LP is $250,000, with no maximum
limit. The fund’s investment period spans three years, followed by
a four-year harvest period, resulting in a total term of seven
years. However, capital is returned to investors during
harvest, meaning a significant portion of the invested capital may
be returned well before the seven-year mark. Innovative Fee
Approach? Per the report, the Meanwhile BTC Private Credit
Fund charges a 2% management fee and a 20% carried interest fee,
both in Bitcoin. The carried interest fee only applies when the
LP’s Bitcoin holdings are increased. This fee structure
ensures that if Bitcoin experiences substantial price appreciation,
Meanwhile does not benefit from the price appreciation itself but
rather from generating more Bitcoin for the LPs. Addressing
concerns about risk management, Townsend highlighted that the
closed structure of the fund eliminates the risk of a “bank run”
scenario that can lead to insolvency. Moreover, the fund focuses on
making conservative loans to “creditworthy institutional
borrowers”, mitigating risks associated with lending to retail
investors at higher rates. Related Reading: Why Bitcoin’s
Staggering 260% YTD Surge Could Be Just The Start The Block also
reported that Anchorage Digital serves as the fund’s custodian.
Meanwhile Group’s insurance unit has previously launched a
Bitcoin-denominated life insurance policy, and Townsend mentioned
plans to introduce an accidental death coverage policy in Bitcoin
as well. When writing, the leading cryptocurrency in the market is
trading at $43,200, marking a decrease of nearly 2% within the last
24 hours. This decline follows an unsuccessful attempt to solidify
its position above the significant $44,000 milestone.
Nevertheless, Bitcoin has managed to maintain a 14% increase over
the past seven days and is currently holding strong at the support
level of $43,000, as it sets its sights on achieving a new annual
peak. Featured image from iStock, chart from TradingView.com
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