Hut 8 Invests 1000 Bitcoins with Genesis to Earn 4% Interest

Toronto Stock Exchange-listed mining company, Hut 8 is hoping to lure Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term investors and onboard more clients by opening a savings-like account with a premium interest rate. The crypto miner opened a Bitcoin (BTC) Yield Account in partnership with Genesis Global Capital, a New York-based cryptocurrency trading and lending platform.

Hut 8 will make an initial investment of 1000 bitcoin and earns a 4 percent rate of return on its idle bitcoin holdings. The program permits Hut 8 to redeem their borrowed coins without a long term commitment, and the firm can increase or decrease their holdings with one day notice.

Bitcoin mining is a very competitive industry as miners worldwide are verifying transactions while securing the network for economic incentives. Additionally, the global demand is growing in lockstep with Bitcoin price, which does not show signs of slowing. The abrupt upside movement of the bitcoin price, which made over 300 percent gain in 2020, will pretty much mean solid business for crypto miners like Hut 8 as they are making a lot of money confirming blocks.

"We are excited to be partnering with Genesis to manage our digital assets, allowing us to yield Fiat currency from the significant BTC on our balance sheet, minimize Hut 8's Fiat expenses and subsequently expand our ability to hold Bitcoin rather than sell. Our current momentum and trajectory are just the start of what's to come in 2021 for Hut 8 and its investors," says Hut 8 CEO, Jaime Leverton.

Genesis Ecosystem Continues to Grow

The amount of interest paid on crypto accounts often vary by several parameters, which the client can tweak to potentially receive a premium in US dollars on his Bitcoin holding.

Genesis primarily lends to institutional borrowers, such as hedge funds and trading firms looking for arbitrage, mainly to short crypto. Since the launch of the business two years ago, the startup originated nearly $9 billion in crypto loans, the bulk of which are denominated in bitcoin and cash.

Moreover, Genesis is an exclusive distribution agent for Grayscale investments products and the company’s crypto suite includes digital asset trading, institutional lending, custody and prime brokerage services.

Furthermore, the company’s derivatives trading desk, which was launched in May, is a principal Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term provider and trade both cleared and bilateral OTC derivatives in options and forwards.

"Genesis has been building increasingly sophisticated infrastructure for crypto markets since we launched the first U.S. OTC bitcoin trading desk in 2013. Today we're a full-service digital asset prime brokerage providing a range of services across the cryptocurrency ecosystem. We're excited to be working with Hut 8 - the largest publicly traded Bitcoin mining operation in the Canadian market - to enable them to generate yield on BTC. Our work together is another indicator of Bitcoin's growing value for institutional investors," says Matt Ballensweig, Genesis VP Head of Lending.