Acacia Research Corporation has announced a strategic partnership with Unchained Capital and Build Asset Management to acquire commercial whole loans collateralized by Bitcoin.
Under the agreement, an affiliate of Unchained Capital will originate these loans, which will then be sold to a wholly owned subsidiary of Acacia Research Corporation. Build Asset Management will provide administrative and other services to Acacia Research Corporation in connection with the purchase and holding of these loans.
Martin (“MJ”) D. McNulty, Jr., Chief Executive Officer of Acacia Research Corporation, stated that the collaboration aims to capitalize on Bitcoin’s role as a secure source of quality collateral. He noted that the loans are expected to offer attractive risk-adjusted returns due to healthy interest rates, low loan-to-value metrics, and the institutional custody solutions protecting the Bitcoin collateral for these fully recourse loans. Mr. McNulty emphasized that the partnership provides Bitcoin holders with dollar liquidity while allowing them to retain ownership of their Bitcoin.
Acacia Research Corporation (Nasdaq: ACTG) is a publicly traded company focused on acquiring and operating businesses across the industrial, energy, and technology sectors. The company evaluates opportunities based on the attractiveness of underlying cash flows, without a specific investment horizon, and operates under principles of people, process, and performance. Acacia has built a management team with expertise in research, transactions, execution, operations, and management.
Founded in 2016, Unchained Capital is an Austin-based Bitcoin financial services platform. The company has secured over $12 billion in Bitcoin assets and originated $1 billion in loans with zero rehypothecation. Unchained pioneered collaborative custody, which allows Bitcoin holders to access lending and financial services while maintaining control of their private keys, thereby addressing counterparty risk within the digital asset industry.
Build Asset Management, an investment adviser registered with the U.S. Securities and Exchange Commission, was founded in 2018. Its mission is to offer options for investors in fixed income and credit amidst evolving market conditions. In partnership with Unchained Inc., Build launched a Bitcoin-focused private credit fund in July 2023, which invests in commercial loans made to small and medium-sized U.S. businesses.
