Imagine a world where your Bitcoin holdings can secure you a loan while still retaining ownership of your digital assets. Well, that world is closer than you think! Today, Acacia Research Corporation (Nasdaq: ACTG) has made a groundbreaking move by partnering with Unchained and Build Asset Management to introduce a Bitcoin-backed commercial loan strategy. This strategic alliance not only promises attractive returns but also propels Acacia further into the dynamic realm of the expanding Bitcoin ecosystem.
The Innovative Partnership Unveiled
Empowering Investors Through Bitcoin Collateral
Picture this: Acacia will acquire commercial whole loans, fully backed by Bitcoin as collateral. These loans, originating from Unchained's affiliate, will then be sold to Acacia's subsidiary. The meticulous management of these loans will be entrusted to Build Asset Management, ensuring a seamless and secure process.
The Strategic Vision and Benefits
Redefining Risk-Adjusted Returns in the Bitcoin Space
Here's the deal: By offering healthy interest rates, maintaining low loan-to-value metrics, and leveraging cutting-edge institutional custody solutions for the Bitcoin collateral, these loans are set to deliver appealing risk-adjusted returns. Martin ("MJ") D. McNulty, Jr., Acacia's CEO, emphasizes the strategic advantages and innovation embedded in this forward-looking approach.
Acacia's Foray into the Bitcoin Landscape
Seizing Opportunities at the Forefront of Innovation
Acacia, renowned for its prowess in industrial, energy, and technology sectors, is now venturing into the realm of Bitcoin with unwavering confidence. By harnessing its strategic capital and operational acumen, Acacia is embracing the transformative power of Bitcoin and its associated opportunities.
Transitioning from traditional acquisitions to cutting-edge ventures, Acacia is charting a new path in the financial landscape, ensuring its shareholders benefit from this bold move.
Joining Forces for Financial Evolution
Unchained and Build Asset Management: Pioneers in Bitcoin Finance
Unchained, a stalwart in Bitcoin financial services since 2016, has pioneered secure custody solutions for over $12 billion in Bitcoin assets. With a loan origination record of $1 billion, Unchained's commitment to zero rehypothecation sets a new standard in the industry.
On the other hand, Build Asset Management, established in 2018, brings a wealth of investment expertise in Bitcoin-focused credit strategies. Their track record of launching innovative credit funds speaks volumes about their commitment to driving financial evolution.
Together, these visionary entities are poised to reshape the financial landscape by unlocking the latent potential of Bitcoin as collateral, ushering in a new era of financial products and investment possibilities.
Are you ready to explore the future of finance with Acacia, Unchained, and Build Asset Management? Stay tuned as we embark on this exciting journey together!
Frequently Asked Questions
Is buying gold a good retirement plan?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
Physical bullion bars are the most popular way to invest in gold. There are many ways to invest your gold. It's best to thoroughly research all options before you make a decision.
If you don’t have the funds to invest in safe places, such as a safe deposit box or mining equipment companies, buying shares of these companies might be a better investment. If you need cash flow to finance your investment, then gold stocks could be a good option.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.
What are the pros & cons of a Gold IRA?
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. An IRA is a great way to save money and not have to pay taxes on the interest you earn. This type of investment has its downsides.
For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. A penalty fee will be charged if you decide to withdraw funds.
The downside is that managing your IRA requires fees. Many banks charge between 0.5% and 2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
Insurance is necessary if you wish to keep your money safe from the banks. Most insurers require you to own a minimum amount of gold before making a claim. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers limit how many ounces you can keep. Others allow you the freedom to choose your own weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Futures contracts for gold are less expensive than physical gold. Futures contracts provide flexibility for purchasing gold. You can set up futures contracts with a fixed expiration date.
You also need to decide the type and level of insurance coverage you want. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. However, it does cover damage caused by natural disasters. You may consider adding additional coverage if you live in an area at high risk.
You should also consider the cost of storage for your gold. Storage costs will not be covered by insurance. Safekeeping costs can be as high as $25-40 per month at most banks.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians can't sell assets. Instead, they must keep your assets for as long you request.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. Your plan should include information about the investments you want to make, such as stocks, bonds, mutual funds, or real estate. Also, you should specify how much each month you plan to invest.
After filling out the forms, you'll need to send them to your chosen provider along with a check for a small deposit. The company will then review your application and mail you a letter of confirmation.
Consider consulting a financial advisor when opening a golden IRA. Financial planners are experts in investing and will help you decide which type of IRA works best for your situation. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
Is gold a good investment IRA?
For anyone who wants to save some money, gold can be a good investment. It can be used to diversify your portfolio. But there is more to gold than meets the eye.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It is often called “the oldest currency in the world.”
But gold is mined from the earth, unlike paper currencies that governments create. Because it is rare and difficult to make, it is extremely valuable.
The supply-demand relationship determines the gold price. The economy that is strong tends to be more affluent, which means there are less gold miners. The value of gold rises as a consequence.
On the other hand, people will save cash when the economy slows and not spend it. This leads to more gold being produced which decreases its value.
This is why both individuals as well as businesses can benefit from investing in gold. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
Your investments will also generate interest, which can help you increase your wealth. Plus, you won't lose money if the value of gold drops.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
External Links
finance.yahoo.com
irs.gov
bbb.org
cftc.gov
- Fraud Advisory: Precious Metals Fraud
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