Market Neutral, Attractive Yield with Securitized Lending

Berglinde provides capital to borrowers who use Bitcoin as collateral to secure loans. These loans are always overcollateralized, meaning the value of the Bitcoin collateral exceeds the loan amount, significantly reducing counterparty risk. Berglinde continuously monitors collateral levels 24/7 to ensure they remain above the required threshold. If the collateral value drops below a predefined level, Berglinde initiates a controlled liquidation process to protect its capital. As the lender, Berglinde earns interest on these loans, generating yield for its investors while maintaining capital efficiency and robust risk management.

Investor returns depend on prevailing market conditions, interest rates in the Bitcoin lending space, and the risk profile of specific lending opportunities. Berglinde structures its lending strategies to generate stable and predictable yields, which are typically superior to traditional fixed-income instruments. While returns are not guaranteed, Berglinde’s focus on overcollateralization and stringent risk management ensures that investors benefit from a secure and market-neutral income stream.

Berglinde’s lending model is designed to be market-neutral because it does not rely on Bitcoin price appreciation to generate returns. Instead, yield is derived from interest payments made by borrowers, independent of Bitcoin price fluctuations. Additionally, all loans are overcollateralized, meaning that even in volatile market conditions, the collateral value remains sufficient to cover outstanding loan obligations. This ensures that Berglinde’s investment strategy is shielded from directional market risk.

Berglinde works exclusively with reputable lending platforms and custodians that implement best-in-class security measures for Bitcoin custody. Collateralized Bitcoin is typically held in multi-signature wallets or institutional-grade custody solutions, reducing counterparty risk. In the event of loan defaults, predefined liquidation mechanisms ensure that Berglinde can recover the loaned capital by selling the Bitcoin collateral in a controlled and efficient manner.

Berglinde employs a rigorous due diligence process before deploying capital across lending platforms. This includes assessing platform reliability, security practices, liquidation procedures, and borrower quality. Additionally, Berglinde diversifies its lending exposure across multiple platforms and counterparties to minimize concentration risk. Continuous monitoring ensures that collateral levels remain sufficient, and in cases of heightened market volatility, Berglinde takes proactive measures to protect investor capital.