Meanwhile Group, Supported by Sam Altman, Launches Bitcoin Private Credit Fund Catering to Institutional Investors

Meanwhile Group, a financial services entity focused on Bitcoin, and receiving support from Sam Altman, CEO of OpenAI, has launched a Bitcoin private credit fund under the purview of its investment management division, Meanwhile Advisors. This exclusive closed-end fund targets institutional investors, presenting a conservative 5% yield denominated in Bitcoin, the press release said. Investors will contribute U.S. dollars to the fund, which will be subsequently converted into Bitcoin, with associated fees also transacted in the cryptocurrency.

Private credit, a well-established practice involving non-bank institutions lending funds to businesses and individuals, has already gained prominence within traditional financial markets. Projections from BlackRock indicate an anticipated growth of the private credit sector to $3.5 trillion by 2028.

Zac Townsend, the Co-founder and CEO of Meanwhile Group, underscored the importance of robust capital markets for a flourishing Bitcoin economy. He highlighted the private credit fund as a distinctive opportunity for institutional investors to optimize the value of their Bitcoin holdings without sacrificing ownership.

Our insurance company works by taking in premiums, investing them along our own solvency capital, and getting steady, conservative returns in BTC. We have done that with no credit losses to date. Today we're launching a credit fund directly built on top of that experience. https://t.co/NZSSqLrCE6

— Zac Townsend (@ztownsend) December 7, 2023

The fund's objective is to secure $100 million from investors, as per The Block's report. Meanwhile Group has previously entered the cryptocurrency realm with Meanwhile Insurance, an AI-enhanced life insurance business that successfully raised $19 million in an investment round earlier this year. Noteworthy participants in the funding round included Sam Altman from OpenAI and Gradient Ventures, Google's AI-focused investment arm.

Additionally, Meanwhile Group is ambitiously expanding its array of crypto-centric financial products, contemplating offerings such as term life insurance and accidental death coverage denominated in Bitcoin. This strategic move illustrates the company's dedication to providing a diverse range of financial products within the cryptocurrency space.

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