NYDIG, Stone Ridge’s subsidiary that offers Bitcoin-backed loans, is preparing to expand its offering through float financing, according to the firm’s 2024 investor letter.
The letter rebuts common objections to Bitcoin’s (BTC) utility, suggesting that it can generate cash flow through sales and serve as collateral for fiat loans.
Float is a key concept in insurance and asset management. It represents investable capital derived from premium payments or reserves. Stone Ridge’s Longtail Re has experience deploying billions of dollars in asset-backed loans, albeit none backed by Bitcoin.
Warren Buffett’s Berkshire Hathaway is notoriously known for using its float as leverage. The company raised its float from $114 billion in 2017 to $164 billion as of Dec. 31, 2022.
Consequently, integrating float into Bitcoin-backed lending could transform the market and offer BTC holders a source of liquidity.
Stone Ridge envisions a positive feedback loop of increased utility for Bitcoin ho
We współpracy z: https://cryptoslate.com/nydig-explores-float-financing-for-bitcoin-backed-lending-market/
