Andrew Hones, CEO and founder of New Market Capital, unveiled “Battery Finance” on CNBC on Friday—an asset management platform combining traditional assets like real estate with Bitcoin BTC/USD.
What Happened: In an appearance on Squawk Box, Hones announced a loan that blends a 63-unit multi-family property in Philadelphia with Bitcoin as collateral.
A $2 million loan was issued to refinance the existing mortgage on the property, fund improvements and allocate funds for purchasing Bitcoin.
The loan combines traditional real estate collateral with Bitcoin, diversifying risk.
Borrowers must hold Bitcoin in escrow for at least four years, ensuring stability.
The crypto king adds a hedge against inflation and enhances asset protection compared to traditional loans reliant solely on property.
Borrowers can repay loans anytime without penalty, but Bitcoin collateral remains locked for four years.
Hones noted that this hybrid approach pairs stable, cash-flowing assets with Bitcoin’s growth potential, creating a hedge against volatility.
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Why It Matters: Hones believes Bitcoin can complement fixed-income portfolios and address pension fund shortfalls.
Over the medium to long term, Bitcoin’s performance offers the potential for significant returns—its worst historical return over any four-year period stands at 23%.
This approach aims to reduce reliance on high-risk credit investments while narrowing asset-liability mismatches in pension portfolios.
By integrating Bitcoin with traditional credit structures, Hones envisions a transformative investment strategy capable of reducing pension funding gaps and enhancing overall portfolio stability.
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