I've seen Meanwhile in the news and online here and there. Their headline product was bitcoin denominated life insurance, but I'm a little doubtful that selling life insurance policies is leading to $80 million rounds...
On their website, it says they also offer some institutional products:
BTC-denominated life insurance helps banks and corporations manage long-term risks associated with highly compensated employees and serves as a tax-efficient hedge against inflation. These products are commonly used to offset costs associated with employee benefit programs and other long-term liabilities.
They also do something called "Funding agreements":
Funding Agreements offer a simple, programmatic way to earn yield on BTC holdings with customizable terms, institutional custody, and a straightforward onboarding process for BTC treasuries and institutional investors.
This sounds like they loan out bitcoin.
The firm invests policyholders’ premiums by lending Bitcoin to large, regulated financial institutions. Zac Townsend, a co-founder and chief executive officer of Meanwhile, said the firm is now “one of the largest lenders of Bitcoin in the world at duration,” or over longer periods of time.
Loans seem good to me. I like the idea that more businesses are coming into the space to offer loans on bitcoin. Still, I'm surprised at the valuation of this company. What do the investors see that I'm missing?
The fundraise came just six months after the firm announced its series A funding round of $40 million in April. Meanwhile’s initial funding in 2023 was led by OpenAI CEO Sam Altman. Townsend declined to comment on the company’s latest valuation.
Perhaps it is in this little quote from the CEO:
Townsend said that the firm will use the money to grow the team’s capacity to serve the growing institutional demand for Bitcoin insurance products.
Perhaps investors are hopeful that all these treasury companies sitting on piles of bitcoin will want their services.