Key Insights:

• Meanwhile Group introduces a Bitcoin fund, promising a 5% income in BTC, targeting institutional investors and backed by prominent figures.
• With a $250,000 minimum investment, Meanwhile Group’s fund offers a secure, long-term Bitcoin investment strategy over seven years.
• The fund, managed by Meanwhile Group, ensures security through Anchorage Digital custody and diversifies into Bitcoin-based financial products.

In a significant development within the cryptocurrency finance sector, Meanwhile Group, supported by Sam Altman, the CEO of OpenAI, has announced the launch of a Bitcoin private credit fund. This initiative marks a notable step for Meanwhile Group, a company deeply entrenched in Bitcoin-focused financial services, as it navigates the ever-evolving crypto market.

A New Era in Crypto Financing

The introduction of this private credit fund by Meanwhile Group signifies a pioneering move in cryptocurrency investment. Catering primarily to institutional investors, the fund offers an appealing 5% income in Bitcoin (BTC). This move follows Meanwhile Group’s successful $20 million seed funding round in June, featuring investments from renowned figures like Sam Altman, Lachy Groom, and Gradient Ventures, an arm of Google.

The fund’s objective is ambitious – to raise $100 million, with the fundraising period projected to conclude by the first quarter of 2024. Contributions from investors, made in U.S. dollars, will be converted into Bitcoin, aligning with the fund’s Bitcoin-centric ethos. Bitcoin’s unique charging fee structure further underscores the company’s commitment to the digital asset space.

Strategic Fund Structure and Long-term Vision

Meanwhile Group’s Bitcoin private credit fund sets a clear entry point for investors, with a minimum investment of $250,000 per Limited Partner (LP) and no set maximum. The fund spans seven years, divided into a three-year investment phase and a subsequent four-year harvest period. Notably, investors may receive a return on their capital during harvest, earlier than the full term.

The fund’s fee framework includes a 2% management fee and a 20% carried interest fee, uniquely charged in Bitcoin. Zac Townsend, co-founder and CEO of Meanwhile Group, explains that the carried interest is activated when an LP’s Bitcoin yields additional Bitcoin, effectively shielding investors from the volatility of Bitcoin price fluctuations.

Emphasizing Security and Risk Mitigation

Townsend highlights the fund’s closed structure as a critical risk management feature, acknowledging the inherent risks in cryptocurrency investments. This approach prevents the risk of mass withdrawals, which have previously led to liquidity crises in other crypto lending scenarios. Meanwhile Group’s strategy focuses on conservative lending to institutionally credible borrowers, setting it apart from higher-risk retail investor lending platforms.

Anchorage Digital, renowned for its robust crypto custody solutions, acts as the fund’s custodian. This partnership lends the fund an additional layer of security and credibility, instilling greater confidence among investors. Meanwhile Group’s broader vision includes expanding its portfolio of cryptocurrency-denominated financial products. This includes innovative offerings such as Bitcoin-based term life insurance and accidental death coverage, building on the success of its earlier Bitcoin-denominated life insurance policy.

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