Meanwhile, a Bermuda-regulated Bitcoin life insurer has secured $82 million in fresh funding to expand its services and meet new market demands.
According to a news report from Bloomberg, the funding round, announced six months after its $40 million Series A in April, drew support from Apollo, Northwestern Mutual, Pantera Capital, Stillmark, Bain Capital, and Haun Ventures.
According to CEO Zac Townsend, the firm is now one of the largest Bitcoin lenders in the world. “We are not running a hedge fund or trading desk or worried about the price of Bitcoin day-to-day,” he said. “We engage in institutional B2B, private credit,”
Townsend added that the new capital will help the team grow and strengthen its risk and regulatory systems. The company says its products are built to meet increasing demand from institutions and long-term Bitcoin holders.
The unique life insurance products provide a major tax advantage for individuals holding Bitcoin. After two years of holding a policy, customers gain the ability to borrow up to 90% of the Bitcoin value in their policy.
This loan is done in a tax-free manner. The act of borrowing gives Bitcoin a new cost basis. It lets the policyholders sell the borrowed amount without having to pay any capital gains tax. This feature is especially attractive to serious long-term crypto investors.
The insurer, which launched its services in 2023, invests the premiums of its policyholders. They do this by lending the collected Bitcoin to large, regulated financial firms.
Katie Haun of Haun Ventures said that life insurance is an “important underpinning of financial services.” She added that the move to Bitcoin shows “how far Bitcoin has come.”
Furthermore, Stefan Cohen of Bain Capital believes that as the underlying asset gets better, people will want products “expressed in Bitcoin terms.” This funding shows the market’s belief in the future of Bitcoin-linked financial products.
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