As the world’s largest asset managers launch products related to cryptocurrencies, Sam Altman is not falling behind. The CEO of the Sam Altman-backed Meanwhile Group announced that he has been reinstated in an executive position following his removal from OpenAI and is making a $100 million crypto move. This move comes at a time when excitement in the cryptocurrency world is increasing.
Sam Altman is the founder of the Worldcoin project and is currently the CEO of the largest artificial intelligence company. Known for his interest in cryptocurrencies, Sam is among the supporters of a crypto venture called Meanwhile Group. This company has launched a private Bitcoin credit fund through its investment management subsidiary Meanwhile Advisors.
According to the current announcement, the fund named Meanwhile Private Credit Fund LP will offer a 5% return in BTC to institutional investors. Like other crypto lending institutions, the fund will lend Bitcoin to applicants and distribute this interest to its investors.
Before going bankrupt, Genesis was the largest crypto lender and collapsed by taking significant risks. As a result, last year a fault line formed in the crypto lending space, and there is potential for a major disaster in the future. Tether‘s USDT loans to exchanges are not discussed today, but they could cause problems in the markets in the future.
Zac Townsend, founding partner and CEO of Meanwhile Group, stated that he aims to raise $100 million from investors by the end of March. Investors will have invested in Bitcoin and will receive an annual 5% interest in BTC. This seems attractive to investors willing to take risks in the field, provided that Meanwhile lends to the right people and does not go bankrupt.
There is no maximum limit for investments in the fund, which can start from a minimum of $250,000. The investment duration of the fund is three years, and payments can continue for up to seven years. The fund will have a 2% management fee collected in BTC.
When asked how to avoid a similar situation that led to the collapse of crypto lending institutions like BlockFi and Celsius last year, Townsend pointed out that the closed structure reduces the risk of bank runs. He also emphasized that they will only lend to institutions with high credit ratings.