Borrow against Bitcoin. Deploy the dollars. Keep the spread. @alexandersblume walks through one of the most common yield strategies we see today. Borrowing costs, margin calls, manager risk, and smart-contract risk map onto a modest net return.  From E13 of the BitcoinYield Podcast with the CEO of @Two_Prime youtu.be/V_bXUl0UAdg

.@Two_Prime put 150 BTC of it's own balance sheet as first-loss capital. He explains why committing the firm's own Bitcoin matters when asking investors to trust a lending strategy—and how that commitment sits alongside reporting, regulation, and track record. 🎙️ @alexandersblume

What return makes sense when risking Bitcoin? When asked about the hurdle rate for BTC, @alexandersblume gave this great answer. @Two_Prime

Early access to our conversation with @alexandersblume, CEO of @Two_Prime going out to subscribers of the newsletter in the next hour. Subscribe now: bitcoinyield.com/#newsletter

We just finished recording with @alexandersblume, CEO of @two_prime. Discussing Bitcoin lending, the current yield landscape, and the firm's recent on-chain vault launch. A few takeaways: 1. The Bitcoin hurdle rate Blume's view is the natural CAGR of the asset is the "risk-free" rate. While qualified custody can make that position slightly negative. - “the risk-free rate is something like negative 40, 50 bips.” 2. Lending out Bitcoin Direct lending out of BTC can see roughly 1–5%, depending on duration, terms, and collateralization. Who are users of this type of lending? — “Large hedge funds use it as collateral to trade. Prime brokers use it as a way to facilitate client activities." 3. Vaults as cheaper capital-formation Blume says a properly built fund can cost $150k–$250k to set up, while a vault can be much less. That lowers the operating cost and opens the product to investors below a $10m SMA. — “a vault is less than that, maybe it's 25 to 50k.” 4. The visible yield menu has tradeoffs Incentive farming is hard to scale. Borrowing dollars against BTC, then chasing onchain yield, adds risk layers. Covered calls can be crowded and poorly paid when volatility is low. — “With current IV, you could not pick a worse time to find a covered call selling strategy.” 5. Our Trust model is deliberately hybrid Pareto curates. ICE provides custody. Monthly NAV reporting and loan approval sit alongside Two Prime's underwriting and track record. “Onchain” does not mean every part is transparent or permissionless. — “I want to be directly in DeFi as little as possible as a starting point.” 6. The billion dollar ambition The ambition is institutional-scale Bitcoin credit. — “I'm in this to make a multi-billion-dollar vault.” The full interview will go out to the BitcoinYield mailing list first on Monday. Public release two days later. Join the list: bitcoinyield.com/#newsletter