I don’t understand who borrows Bitcoin with interest denominated in Bitcoin… I thought this on a small scale at HodlHodl…
When you can have your debt denominated in Dollars, why do this in Bitcoin?
Any ideas of who would borrow on these terms?
Oh boy those who don't learn from the past are doomed to repeat it, it's only been 4 years and here we go again. Bitcoin mining firm MARA has lent 7,377 BTC approximately 16% of its total reserves to third parties to generate yield.
Queue the fireworks, this cycle is going to be fun!
https://theminermag.com/news/2025-01-05/mara-lend-bitcoin-btc/
Discussion
If we look at the daisy chain of the last round it all really ended up with 3 arrows capital and Alameda who were using it for leverage traders, I guess you could borrow them to exchanges like a ByBit or Binance or a new startup that wants to offer leverage, or to do a short trade, but honestly I'm not really sure who the end users of this bitcoin would be, I guess we find out when it all goes pear shaped
Yeah I don’t doubt there is some sort of play here. Maybe it is strictly for short positions…. I’m not a finance guru enough to figure it out yet.