" class="no-js "lang="en-US"> Meanwhile Group Unveils First Bitcoin Private Credit Fund
Monday, March 04, 2024

Meanwhile Group Unveils First Bitcoin Private Credit Fund

After launching the first and only life insurance company entirely denominated in a cryptocurrency, parent company Meanwhile Group’s subsidiary Investment Manager, Meanwhile Advisors, has announced the launch of a first-of-its-kind bitcoin private credit fund: Meanwhile BTC Private Credit Fund LP. The private credit fund aims to attract institutional investors seeking access to BTC’s growth with an added conservative BTC-denominated yield. This launch comes on the heels of Meanwhile Group’s $20 million seed funding announcement in June, led by Sam Altman, Lachy Groom, and Gradient Ventures (Google).

Unlike retail-focused on-chain lending, the fund serves as a dynamic alternative within the Bitcoin ecosystem. Thanks to Meanwhile Advisors’ expertise, investors can expect a conservative BTC-denominated yield targeting five percent during the closed fund’s term. Meanwhile Advisors lends bitcoin to a diverse range of institutional counterparties and has implemented a rigorous assessment of creditworthiness to ensure quality and safety. This approach more effectively mitigates risk relative to retail-focused platforms, which predominantly lend to speculative individual investors.

“A thriving Bitcoin economy is inevitable, but to realize this future and maximize its potential, robust capital markets are essential,” said Zac Townsend, co-founder and CEO of Meanwhile Group. “Meanwhile Advisors is at the cutting edge of this financial revolution, building products that bridge the gap between fiat money and cryptocurrency. This private credit fund offers unparalleled potential for institutional investors to unlock the full value of their BTC holdings without compromising their ownership, seizing a unique opportunity for optimized returns.”

The fund operates under a distinctive structure to ensure tax efficiency for its investors. Investors contribute USD, which is then converted into BTC immediately following the fund’s single close, meaning the fund will not take any currency risk to fund the lending activities. Fees are charged in BTC, aligning interests between the fund and its limited partners.

“We view Meanwhile Advisors’s BTC private credit fund as a leading edge investment opportunity and an indicative signal of the advancements we anticipate will shape the future of the Bitcoin ecosystem,” said Alyse Killeen, GP and Managing Partner of Stillmark, a bitcoin-focused venture capital firm founded in 2019. “As the digital asset economy grows institutional investors will look for innovative ways to activate their exposure to the asset class, and we believe Meanwhile is uniquely situated to deliver this strategy given its expertise within the insurance business.”

Unique benefits of Meanwhile’s private credit fund include:

  • Expertise: Meanwhile Advisors boasts a seasoned team of financial experts with a profound understanding of both the cryptocurrency and institutional investment realms, providing niche experience working with institutional borrowers and lending BTC at term.
  • Security: The private credit fund is designed with a top-notch security infrastructure, prioritizing the protection of investors’ valuable BTC assets.
  • Risk Management: Meanwhile Advisors adopts a conservative risk management approach, carefully selecting creditworthy institutional counterparties to mitigate potential risks.

In the coming months, Meanwhile Group aims to develop a comprehensive range of financial products denominated in cryptocurrency, including term life insurance and accidental death coverage in BTC.

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