As the world’s largest asset managers enter the race to launch products related to cryptocurrencies, Sam Altman is not left behind. Meanwhile, supported by Sam Altman, the CEO invited to re-manage OpenAI after being ousted, announced a $100 million crypto move. So what does this mean?
Sam Altman and Bitcoin
Sam Altman, who is also the founder of the Worldcoin project, is currently the CEO of the largest artificial intelligence company. Sam, who is interested in crypto, is also among the supporters of Meanwhile Group, a crypto venture. This company launched a private Bitcoin credit fund through its investment management subsidiary Meanwhile Advisors in the midst of increasing excitement in the crypto world.
In a recent announcement, it was said that the fund, called Meanwhile Private Credit Fund LP, will offer institutional investors a 5% return in BTC. Like other crypto credit institutions, the fund will lend Bitcoin to those who request it and distribute this interest to its investors.
Genesis was the largest crypto credit lender before it went bankrupt and failed to collect its receivables, collapsing due to taking on significant risks. Therefore, there was a fault line in the crypto credit field last year and there is a potential for a major catastrophe in the future. The USDT credits that Tether gave to exchanges are something that is not talked about today, but can cause trouble in their markets in the future.
Meanwhile and the Bitcoin Fund
Zac Townsend, co-founder and CEO of Meanwhile Group, said he aims to raise $100 million from investors by the end of March next year. Investors will have made a Bitcoin investment and will receive a 5% annual interest in BTC. This sounds good to investors who are willing to take risks in this area. Of course, as long as Meanwhile lends to the right people and doesn’t go bankrupt.
“Throughout the life cycle of this fund, it allows for exponential performance of Bitcoin if the price of Bitcoin rises, as our investors accumulate more Bitcoin at higher prices without paying more principal.”
A minimum of $250,000 can be invested in the fund, and there is no maximum limit. The investment term of the fund is three years, and the payments can continue for up to seven years. The fund will have a 2% management fee, which will be collected in BTC.
When asked how Meanwhile will avoid a similar situation that led to the collapse of crypto credit institutions like BlockFi and Celsius last year, Townsend said that the closed structure reduces the bank run risk. He also emphasized that they will only offer loans to highly credible institutions.