Canadian investment firm Belgravia Hartford Capital has secured a $5 million convertible debenture facility from Round13 Digital Asset Fund specifically for investment in Bitcoin.
The financing instrument functions as a loan carrying a 4% annual interest rate. Crucially, it includes an option to convert the debt into equity in Belgravia Hartford Capital. This structure allows Round13 to potentially participate in the company’s future value appreciation, aligning interests beyond the debt repayment.
Belgravia Hartford Capital cited Bitcoin’s fixed supply cap and the increasingly mature market infrastructure surrounding the cryptocurrency as key drivers for directing this capital towards Bitcoin investments. The move underscores the persistent trend of institutional capital seeking exposure to digital assets.
Industry observers suggest this type of structured debt-for-Bitcoin investment could enhance market liquidity by providing new capital inflows. It also presents a potential model for future institutional investment vehicles seeking crypto exposure while offering downside protection features. Deal structures like this may further bolster confidence in cryptocurrency as an allocable asset class.
However, the firm emphasized they will proceed with caution amid known risks inherent to the cryptocurrency market, including price volatility, evolving regulatory landscapes, and potential security considerations associated with digital asset holdings.