Stone Ridge subsidiary NYDIG, which provides Bitcoin-backed loans, revealed in a letter to investors in 2024 that it is preparing to expand its services through float financing. The letter counters common objections to Bitcoin's utility, indicating that it can generate cash flow through sales and serve as collateral for fiat loans.
Analysis points out that integrating floating capital into Bitcoin-backed loans could change the market and provide a source of liquidity for BTC holders.
Stone Ridge envisions a positive feedback loop that could enhance the utility of Bitcoin holdings by excluding Bitcoin positions from the market, accelerating fiat currency devaluation, and further increasing the value of Bitcoin.
Marathon Digital advisor Sam Callahan stated that this move is significant as it will unlock 'one of the largest pools of investable capital in the entire financial system' for the Bitcoin ecosystem. He also agrees with the report's assertion that achieving more efficient lending through Bitcoin backing will lower costs and prevent BTC from being sold for liquidity. This will increase prices by enhancing scarcity and demand, attracting more institutions, and accelerating its adoption.

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