Floating-Rate Bitcoin Notes
Earn incremental income by lending your Bitcoin to short sellers — and remain exposed to the market while reflexively driving Bitcoin's scarcity.
Example Floating-Rate Note
| Issue date | May 01, 2024 |
|---|---|
| Issued in | Spot Bitcoin |
| Matures in | One year |
| Interest rate | Varies — view latest rates |
| Interest paid | Every month until maturity |
| Minimum purchase | $2,500 USD equivalent BTC |
| Maximum purchase | Contact us |
Latest Rates - Average APY
1.0%
Last updated April 23, 2024
View historical data. Past performance does not guarantee future results.
Our simple, market-neutral strategies deliver you Bitcoin-denominated returns independent of market swings, and our high-touch service will remind you that we're behind you every step of the way. If you'd like to know more about Encrypted Energy, why don't you get in touch?
Problem
Bitcoin holders need to make directional bets on the market in order to generate yield.
Price Risk
If the market moves in the opposite direction of what you anticipate, you may incur losses on your position.
Volatility Risk
High volaility leads to larger price swings, which increases the likelihood the market moves against your position.
Transaction Fees
Brokerage commissions and wide Bid-Ask-Spreads may lower overall trading performance, particularly when overtrading.
Solution
We track the supply-demand for borrowing each of the Bitcoin ETFs, then we trade your collateral into the most in-demand Bitcoin ETF.
Market Neutral
Our strategy is able to deliver Bitcoin-denominated returns that are independent of Bitcoin's market direction.
Yield Optimized
We opportunistically trade your collateral between the 7+ Bitcoin ETFs — moving it to where it is most productive.
Fast Payments
At the start of every month, we'll pay out any of the interest your collateral earns to your Lightning address.
Have a question? Contact us and we'll be eager to help.
Dynamic yield optimization
Every funded note is invested in one or more of the 7+ Bitcoin ETFs — whichever have the highest lending rewards. When borrowing conditions change, funds are re-balanced, providing you the highest possible yield.
Learn more about dynamic yield optimizationCitadel, Jefferies, Barclays among others
The most well-respected insitutional investors borrow shares to sell short all the time. There is persistent demand from investors to make directional bets, hedge risk in existing positions, or exploit arbitrage opportunities between underlying assets and derivative securities. Odds are high that institutions you're already a customer of are paying interest to sell short assets of all kinds. From global hedge funds to commercial banks to insurance companies and more. Traders much desire short positions. And now you can earn a piece of the loan interest these investors are willing to pay.
Investors pay stock brokers to borrow shares from their clients—such as Encrypted Energy—and then we pass through that income to you.
Read more about our trade flowStart investing with Encrypted Energy behind you. Create a free account to apply for your first note.
Lightning fast interest payments
Interest accrued on your note is paid monthly until maturity.
1st Week of Month - Interest accured is calculated2nd Week of Month - Notification sent
3rd Week of Month - Payment attempted
We recommend using a Lightning address that is managed by a Lightning Service Provider, so that your wallet's channels always have ample inbound liquidity to receive payments. Need a Lightning address? Contact us to get our most up-to-date recommendations.
Start free, then pay for performance
Our billing is performance-based, ensuring you never pay note origination fees and only pay for positive returns. That means you start for free and only pay as your earnings grow.
Earn Bitcoin-denominated income
We pay your interest income in-kind, in Bitcoin Lightning Satoshis. That's not just because we believe in Bitcoin like you. Bitcoin Lightning payments are the the fastest, most cost-efficient, and scalable method for getting interest income to you.
Secure and protected collateral
After your note is funded, we immediately transfer your collateral to one of our limited access brokerage accounts in order to minimize custodial risks such as theft or loss of spot Bitcoin. When your note reaches maturity, we transfer your assets back to spot Bitcoin and repay you with a Lightning payment.
Fully-collaterialized counterparties
Investment firm failures are rare but can happen so it's important we have full protection in place when your collateral is borrowed. Encrypted Energy only works with brokers who post a minimum of 100% cash collateral to be held in custody for us in the event of default.
Have a question? Contact us and we'll be eager to help.
We provide 1:1 consultations over email or Zoom. No extra charge.