NYDIG, a subsidiary of Stone Ridge, plans to expand its Bitcoin-backed loan offerings through float financing, according to the company's investor letter. The letter highlights the potential cash flow generation and collateral value of Bitcoin, rebutting objections to its utility. Float financing, which represents investable capital derived from premium payments or reserves, could transform the market and provide liquidity for BTC holders. Integrating float into Bitcoin-backed lending could increase adoption, scarcity, and demand for BTC, attracting more institutions. Stone Ridge refers to Bitcoin-backed loans as "HODL loans" and expects competitive forces to bring loan pricing closer to traditional stock margin loans in the future.



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