Consumer Bitcoin Installment Plan Origination & Asset-Backed Securitization
First-mover warehouse facility originating consumer Bitcoin installment plans with a clear path to ABS securitization.
Basel III 1250% risk weight makes Bitcoin lending structurally impossible for banks. The credit layer must come from outside the banking system.
| Fund Name | BTC Now Warehouse Fund, LP |
| Structure | Delaware Limited Partnership |
| General Partner | BTC Now Inc. (Delaware C-Corp) |
| Maximum Capacity | $1B |
| Launch Threshold | $25M minimum subscriptions |
| Min LP Investment | $1M |
| Lockup | 24 months from each capital call |
| Redemption | Quarterly FIFO, 30-day notice |
| Leverage | Unleveraged by design |
| Contribution | USD wire or BTC deposit (market price on deposit) |
| Fee | Rate |
|---|---|
| Management Fee | 2.0% of NAV annually |
| Origination Fee | 1.0% of funded amounts |
| Servicing Fee | 1.5% annually, paid monthly |
| Performance Fee / Carry | 0% |
| Operating Expenses Cap | 0.5% of NAV annually |
| Subscription / Redemption | 0% / 0% |
Zero carry is intentional. Removes the single biggest barrier to raising LP capital. Also keeps the fee structure clean enough to enable a future ETF listing path — most private credit funds cannot list as ETFs because carry structures make conversion prohibitively complex.
American consumers purchase Bitcoin through fixed monthly installments. No margin calls. No forced liquidation. Ever.
Algorithmic credit decisioning. Zero manual loan officer override. Every loan underwritten to identical, auditable standards.
No warehouse financing leverage. No margin calls. No forced liquidation. Complete control over securitization timing.
Team experienced with prime brokers, flow providers, and warehouse lines. Leverage optionality explored for future capital efficiency — IBIT options and futures enable zero-cost collars. Not implementing initially given strong unleveraged returns.
$100K purchase, default at month 36, BTC down 20%
Breakeven requires BTC decline >40% from origination AND early default.
Traditional warehouses: defaults deplete capital. BTC Now warehouse: defaults regenerate performing assets.
70% nominal default rate ≠ 70% economic loss.
Effective economic loss: <30% after retained payments, recovery value, and reissuance.
Per $100M tranche
| Scenario | BTC Terminal | Default Rate | LP IRR | Final NAV |
|---|---|---|---|---|
| Bull | $500K | 3% | 18.4% | $541M |
| Base | $200K | 5% | 17.8% | $528M |
| GFC | $120K | 54% | 15.2% | $431M |
| Bear | $30K | 45% | 13.3% | $372M |
| Stress | $10K | 70% | 8.0% | $263M |
Key insight: BTC price drives returns more than default rates. GFC (54% defaults, BTC $120K) outperforms Bear (45% defaults, BTC $30K).
10K Monte Carlo paths • Geometric Brownian Bridge • Rust-based • model.btcnow.com
Demand for Bitcoin-backed debt is already proven at institutional scale.
The problem with corporate Bitcoin bonds: concentrated single-counterparty risk. One balance sheet, one stock price. BTC Now’s answer: diversified across thousands of FICO-scored consumer loans, each independently underwritten with 100% Bitcoin collateral. Same asset, fundamentally better risk structure.
Bitcoin ABS sits between BNPL (unsecured) and auto ABS (depreciating). Superior consumer credit collateral: liquid 24/7, non-depreciating, dual recovery. 70bps yield premium for better protection.
| Lockup Period | 24 months from each capital call date |
| Redemption | Email request, 30-day notice, quarterly FIFO |
| Payout | Original capital + pro-rata NAV |
| Expected Timing | 60-180 days (normal) / 18-24 months (stress) |
| Forced Liquidation | LPs cannot force liquidation during market stress |
| Redemption Fee | 0% |
LPs should consider capital illiquid despite redemption rights. Hybrid structure: closed-end mechanics with limited redemption flexibility.
Core team executed together 10-15 years across regulated funds, sovereign debt, and trading infrastructure. Key hires at close: Mateusz Goslinowski (Credit Risk/Quant, ex-Standard Chartered), Jonathan Thaler (Securitization Infra, PhD CS). Legal: Baker Donelson (Stull / Selden).
Most private credit funds have no exit. This one was designed with one from day one.
A product category that does not yet exist in public markets: liquid access to Bitcoin-backed consumer credit yields. Fee structure was designed from day one with this exit in mind.
Confidential — For Discussion Purposes Only