BTC hodlers can now own crypto and earn a 9% annual return.
Inveniam Capital Partners has arranged a crypto-secured lending facility.
In partnership with Grapefruit Trading, the facility allows BTC owners, as Investors, to post BTC to finance a portion of the $52 million for The Cape at Savona, a multifamily development in Cape Coral, Florida. (see the Savona Term Sheet for the underlying investment).
Example: By posting BTC worth USD 2 million (while continuing to own it), an investor facilitates a USD 1 million loan to the Cape at Savona, and nets $7,500 each month.
For the facility, the terms and expectations are:
- Investment currency: BTC, held by Grapefruit Trading for the duration
- Payout currency: BTC or USD (Investor’s choice)
- Duration: A mezzanine loan outstanding for an expected 6 to 12 months
- Interest rate: 6% to borrow against the BTC
- Investor Gross Return: 15% annual rate, paid monthly
- Advance rate = 50%; Investor Return = 15% annual rate, paid out monthly;
- Interest rate = 6% to borrow against the BTC; Net rate = 15% – 6% = 9%
- Inveniam will make interest-only payments monthly directly to Grapefruit at an annual
rate of 6%.
- Security: BTC will be held as security.
- Security: The investor may also pledge the loan as security to lessen the interest cost of the borrowing.
- At the end of the term, all principal, unpaid interest, and pledged crypto will be returned to the Investor.