Bitcoin News Today: 21 Capital Eyes Bitcoin-Backed USD Loans as Firm Expands Crypto Holdings to $5.13 Billion

21 Capital is reportedly considering issuing U.S. dollar-denominated loans backed by Bitcoin as collateral, according to Bloomberg, citing sources with knowledge of the matter [1]. The firm, supported by Cantor Fitzgerald, has significantly expanded its Bitcoin holdings to at least 43,500 BTC, surpassing initial estimates by 1,500 BTC [1]. The company recently acquired 5,800 BTC from stablecoin issuer Tether, bringing its total Bitcoin assets to roughly $5.13 billion at current prices [1]. Established in April, 21 Capital aims to create one of the largest Bitcoin reserves globally, with key backers including Tether, Bitfinex, and SoftBank [1].

The firm is also progressing with its merger plan with SPAC Cantor Equity Partners and is expected to go public soon [1]. This development highlights the growing trend of financial institutions leveraging digital assets beyond passive holding strategies. As more public companies and funds incorporate crypto into their balance sheets, they are increasingly exploring avenues such as Bitcoin lending, Ethereum staking, and options trading to generate yield from what was once considered "idle assets" [1].

Companies in the Bitcoin mining sector, including MARA Holdings and CleanSpark, have already adopted similar approaches, using crypto derivatives to enhance returns rather than solely relying on holding assets. CleanSpark, in particular, is looking into more advanced derivative tools to capitalize on market volatility [1]. The shift reflects a broader industry movement toward active management of digital assets to optimize returns, particularly as institutional interest in cryptocurrencies continues to rise.

The trend underscores the maturation of the crypto market, as traditional financial players adapt to the evolving landscape by integrating innovative strategies to maximize the utility of their digital holdings. This move by 21 Capital may signal a broader shift in how institutional investors approach Bitcoin and other digital assets, potentially setting a precedent for similar initiatives in the future.

Source: [1] 21 Capital is currently exploring issuing USD loans backed by Bitcoin as collateral. (https://www.theblockbeats.info/en/flash/305220)