Strategies
Bitcoin Long-term Hold and Rebalance
Benaiah Digital will hold a percentage of Bitcoin and rebalance based on management’s discretion. Bitcoin is a foundational asset for blockchain technology and the digital asset market and will be a cornerstone investment strategy for Benaiah Digital.
Ethereum Long-term Hold and Rebalance
Benaiah Digital will hold a percentage of Ethereum. The fund will rebalance quarterly or based on management’s discretion. As the backbone for many tokens, decentralized applications, and Web3, Ethereum is foundational to the development of today's blockchain architecture.
Yield Generation
Benaiah Digital generates additional returns through the staking of assets and stablecoin lending. In staking, the fund seeks and invests in assets with established market caps and use cases. For staking assets, the fund will earn yield (rewards) for actively participating in the maintenance and growth of blockchain networks, contributing to the overall stability and security of the asset’s native ecosystem.
Digital uses primarily centralized lending strategies and lends stablecoins to exchanges, brokerages, and commercial institutions through collateralized notes. This allocation’s investment strategies deliver desirable risk-adjusted returns while providing liquidity or dry powder to capitalize on the down turns in the market.
Trading
Benaiah Digital will utilize a variety of trading strategies designed to capitalize on opportunity and volatility across digital asset markets. The trading strategies will provide the fund non-correlated returns helping to balance the fund's portfolio while offering insurance with downside protection for the fund. These strategies are designed to have realized revenues that will be offset by the tax harvesting strategies executed in the fund's two hold and rebalance allocations.
High Conviction (Alt Coins) & Emerging Projects
Digital will primarily target high conviction alt coins with this allocation. This investment strategy is designed to be flexible across a wide-range of digital assets, and these coins are selected by management based on the internal due diligence. A portion of this allocation is focused on early-state projects and often times these assets can be acquired prior to being traded on the public markets. The early-stage projects will be a longer hold investment with the potential for a significant return.
BENAIAH DIGITAL FIXED INCOME, LP
INVESTMENT STRATEGIES & ALLOCATIONS
Benaiah Digital Fixed Income executes and manages centralized lending strategies that provide investors accessibility, security, and consistent yield generation.
Collateralized Lending
Benaiah Digital Fixed Income executes and manages the collateralized lending strategies that provide investors accessibility, security, and consistent yield generation. Fixed Income provides liquidity to the digital asset market by lending stablecoin in a secure collateralized ecosystem.
The fund uses this centralized lending strategy to generate higher risk-adjusted returns than similar traditional financial products. The need for liquidity in the digital asset market creates a unique opportunity for Fixed Income to capitalize on supplying assets to digital banks, exchanges, and other commercial institutions to generate above average returns with minimal downside risk.
Hedged Staking
The hedged staking strategy of Fixed Income commits to staking high conviction assets on their native blockchains. As a result, this strategy provides a reward (staking yield) to the investors who commit their assets to the blockchain, ultimately strengthening its ability to process transactions and contributing to the security of
the blockchain ecosystem.
The second component of this strategy is to hedge out the price volatility of the asset, leaving just the staking yield. With this hedged staking strategy, the fund maintains a long position on the asset while protecting from the downside risk of a decrease in asset price. The long and short positions offset the price volatility,
yielding just the interest from the staking of the asset.
Depending on the asset staked, it is not uncommon to see yields ranging between 12-15%.
