Bitcoin News Today: Acacia Integrates Bitcoin as Collateral in New Loan Strategy with Unchained and Build

Acacia Research Corporation (Nasdaq: ACTG) has launched a strategic initiative to integrate Bitcoin into its financial portfolio by partnering with Unchained Capital and Build Asset Management. This collaboration aims to develop a commercial loan strategy where Bitcoin serves as collateral, marking a significant shift in how digital assets are leveraged within traditional financial systems [1].

Under the agreement, Acacia’s wholly owned subsidiary will purchase commercial whole loans that are fully secured by Bitcoin. These loans are sourced through Unchained’s affiliated entities, which have extensive experience in the Bitcoin financial services sector. Build Asset Management, which specializes in credit strategies focused on digital assets, will manage the administrative and portfolio operations, ensuring a streamlined and transparent process [1].

The move is driven by a growing recognition of Bitcoin’s potential as high-quality collateral. Martin (“MJ”) D. McNulty, Jr., CEO of Acacia, emphasized that the use of institutional-grade custody solutions, combined with conservative loan-to-value ratios and attractive interest rates, makes Bitcoin-backed loans a compelling option for investors. He noted that the initiative aligns with Acacia’s broader strategy of deploying capital in innovative ways to generate risk-adjusted returns [1].

Unchained, a pioneer in the Bitcoin lending space since 2016, has securely managed over $12 billion in Bitcoin assets and has issued $1 billion in Bitcoin-backed loans without rehypothecation. This track record underscores the company’s commitment to maintaining the security and integrity of its collateral, a key consideration for Acacia’s risk management framework [1].

Build Asset Management, established in 2018, brings expertise in credit strategies targeting the digital asset space. The firm previously launched a private credit fund aimed at small and medium-sized businesses, providing it with a solid foundation to manage the new Bitcoin-backed loan portfolio effectively [1].

The partnership is part of a broader trend where institutional investors are exploring new ways to integrate Bitcoin into their financial strategies. By offering liquidity to Bitcoin holders while allowing them to retain their assets, Acacia is enhancing the utility of digital assets in traditional finance. This approach supports the firm’s objective of expanding its capital deployment across industrial, energy, and technology sectors [1].

The initiative also reflects the evolving landscape of financial technology and the increasing role of crypto assets in institutional finance. As participants seek new risk-return balances, partnerships like this one are likely to shape the future of modern finance. By leveraging Bitcoin’s growing adoption, Acacia and its partners are positioning themselves at the forefront of this transformation [1].

Source: [1] Acacia Partners With Unchained and Build on Bitcoin-Backed Loan Strategy

https://bitcoinmagazine.com/business/acacia-partners-with-unchained-and-build-on-bitcoin-backed-loan-strategy