A sophisticated investor utilizing circular lending protocols has realized a total profit of $55.62 million from Bitcoin holdings represented as Wrapped Bitcoin (WBTC). The strategy involved accumulating a significant position before executing timed sales on Binance.
Starting in late 2024, the whale strategically acquired 1,495 WBTC, valued at $103 million at the time of accumulation, by leveraging funds through circular lending. This method allowed for amplified purchasing power while managing loan obligations.
Profit realization began significantly in early 2024, with the investor selling a portion of the holdings. To date, 923 WBTC have been sold at an average price nearing $100,000 per BTC. Loan repayments were met using the stablecoin USDC generated from these sales.
The total profit of $55.62 million comprises $28.42 million in realized gains from WBTC sales and $27.20 million in unrealized gains attributed to the remaining holdings. A recent transaction involved the sale of 50 WBTC on Binance, securing $5.9 million in profit, consistent with the pattern of strategically realizing gains to manage loans.
This series of transactions highlights the use of complex lending mechanisms within the cryptocurrency ecosystem to build and monetize large positions effectively.