Latest news with #ZacTownsend
Yahoo
3 days ago
- Business
- Yahoo
Bitcoin Life Insurance Firm Meanwhile Shares First Audit
Meanwhile, a Bermuda-based life insurance firm that operates entirely in bitcoin, released on Thursday its 2024 audited financial statements — making it one of the first companies fully operating in bitcoin to ever release a financial audit. 'We follow a tried-and-trusted business model, but we denominate everything in bitcoin,' Zac Townsend, CEO of Meanwhile, told CoinDesk in an interview. The very first life insurance company, The Amicable Society for a Perpetual Assurance Office, was founded in London in 1706, he noted, and Meanwhile essentially follows the same blueprint today. Clients pay for their life insurance in bitcoin and receive a bitcoin payment once the insurance kicks in. Payouts aren't impacted by any shifts in the dollar value of a bitcoin. The audit, performed by Harris & Trotter, shows that Meanwhile had 220.4 BTC in total assets and had net income of 25.29 BTC for the year ended December 31, 2024. Meanwhile is a Bitcoin Treasury company, Townsend said, but it's of a different breed from firms such as Strategy or Metaplanet, which use elaborate financial products to grow their bitcoin stash. Meanwhile accumulates bitcoin by operating a bitcoin business and generating bitcoin revenue. Besides, Bermuda regulation prohibits Meanwhile from selling its assets, since most of the firm's bitcoin is held on behalf of its clients. 'Owning life insurance is a bit like having savings,' Townsend said, adding that it matters to pick a currency that won't suffer from strong inflation, as happened to — for instance — the Argentinian peso. A bitcoin-denominated life insurance eliminates that risk, although policyholders may suffer losses if, say, bitcoin's value crashes and fails to recover. 'This [audit] is an important, foundational step in reimagining the financial system based on a single, global, decentralized standard outside the control of any one government,' Townsend added. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
10-04-2025
- Business
- Yahoo
Crypto for Advisors: Bitcoin Inheritance Strategies
In today's crypto for advisors, Zac Townsend from bitcoin life insurance company Meanwhile explains estate planning options for managing bitcoin inheritance. Then, Peter Dunworth from The Bitcoin Adviser answers questions about these strategies from an advisor's point of view in Ask an Expert. Thank you to our sponsor of this week's newsletter, Grayscale. For financial advisors near Houston, Grayscale is hosting their exclusive Crypto Connect event on Thursday, April 17. – Sarah Morton You're reading Crypto for Advisors, CoinDesk's weekly newsletter that unpacks digital assets for financial advisors. Subscribe here to get it every Thursday. At its recent all-time high, the bitcoin market cap hit $2.1 trillion, indicating that significant wealth has been created for holders of the original cryptocurrency. With the regulatory tailwinds behind digital assets in the new administration and increasing institutional adoption, individuals and their advisors should consider strategies to mitigate potential estate taxes on bitcoin wealth. Many tax professionals expect Congress to extend the increased lifetime gift exemption amount established by the 2017 Tax Cuts and Jobs Act, currently set at roughly $14 million per individual. This means that any American can gift $14 million tax-free, but amounts exceeding this amount are subject to a 40% estate tax. If you believe bitcoin will appreciate significantly in the future, gifting it at today's price can be a strategic move, allowing future appreciation to occur outside of your estate. There are several ways to transfer bitcoin out of one's estate, each with varying tax and control implications. These options include: Gifting bitcoin directly by transferring it to a loved one's digital asset wallet. Funding an irrevocable trust with bitcoin for the benefit of their loved ones. Using bitcoin to purchase a BTC-denominated life insurance policy that pays out to their loved ones upon death. These strategies are not mutually exclusive — when used in concert, they can maximize tax benefits and wealth preservation. Let's look at each of them in turn. Gifting bitcoin directly Transferring bitcoin to someone's digital asset wallet as a gift is a simple way to move it out of your estate. However, there are important considerations to this approach: Loss of control: A gift is irrevocable, meaning the gifter forfeits all control over the asset. This might not be ideal for those transferring wealth to children if there are concerns around handing over full control of an asset. Cost basis retention: The recipient inherits the original cost basis, meaning if/when they sell the bitcoin, they owe capital gains tax on any appreciation since the price at which you originally acquired it. Funding an irrevocable trust with bitcoin An irrevocable trust allows for some level of control over bitcoin despite it being outside of your estate. You can design the trust to pay out at certain ages or life events, as examples. However, like direct gifting, it does not solve the cost basis issue — beneficiaries of the trust receive the bitcoin via distribution at the same cost basis it held when you originally funded the trust. Bitcoin-denominated life insurance Bitcoin-denominated life insurance is a new concept that allows an individual to pay their life insurance premiums in bitcoin and borrow against their BTC-denominated policy tax-free, with the policy paying out more, stepped-up cost basis bitcoin at death to the beneficiaries. If a policy is owned individually, the death benefit pays out into the estate and, therefore, can be subject to estate tax. Combining an irrevocable trust with bitcoin Life Insurance Using an irrevocable trust and a BTC-denominated life insurance policy together solves for all of these concerns — estate tax, cost basis and control. Here's how it works: The irrevocable trust purchases a BTC-denominated life insurance policy on the individual. The irrevocable trust funds the policy premiums. Upon death, the irrevocable trust receives more bitcoin than was paid in premiums, and those bitcoin have a new, stepped-up cost basis. The bitcoin is then distributed according to the trust's terms, preserving control over how and when beneficiaries access it. Bitcoin is typically viewed as a low time preference asset, meaning its holders (or, HODLers) tend to be long-term investors rather than traders; this, coupled with its meteoric rise and potential future price appreciation, makes it an important asset to plan for potential estate taxes. Advisors and individuals should consider one or a combination of these strategies to optimize bitcoin-related tax planning. - Zac Townsend, co-founder and CEO, Meanwhile Q. How might the new administration affect bitcoin investors? A. With regulatory tailwinds and increasing institutional adoption, bitcoin investors now face both opportunities and challenges. The primary concern for those with significant bitcoin holdings is potential estate tax exposure, especially as many portfolios have grown substantially with bitcoin recently reaching a $2.1 trillion market cap. Q. What are some strategies for reducing bitcoin estate tax exposure? A. Three main approaches exist: direct gifting to family members, funding irrevocable trusts with bitcoin and utilizing bitcoin-denominated life insurance policies. Each offers different balances of tax benefits and control. The most comprehensive solution combines an irrevocable trust with a bitcoin-denominated life insurance policy. Q. Why should one consider acting now rather than later? A. Gifting bitcoin at today's valuation allows future appreciation to occur outside your estate. With the lifetime gift exemption currently at approximately $14 million per individual, strategic planning now can significantly reduce eventual tax burdens as bitcoin potentially continues to appreciate. - Peter Dunworth, The Bitcoin Adviser BlackRock adds Anchorage Digital as Crypto Custodian. U.S. stablecoin issuer Circle has filed to go public. The SEC issued a statement on stablecoins, clarifying that most are not securities, especially those used for payments.
Yahoo
10-04-2025
- Business
- Yahoo
Exclusive: Crypto startup Meanwhile, which collects and pays out life insurance policies in Bitcoin, raises $40 million
Zac Townsend, co-founder and CEO of crypto insurance company Meanwhile, believes there is a pool of crypto enthusiasts who want to pay for their life insurance policy in Bitcoin—investors are betting that he's right. Meanwhile just closed a $40 million Series A led by Framework Ventures and Fulgur Ventures with participation from the founder of crypto bank Xapo, Wences Casares, on Thursday. This round values Meanwhile at $190 million, Townsend told Fortune, nearly double what it was valued during its most recent funding round in 2022. Meanwhile's life insurance policies function similarly to average life insurance. The policyholder pays a monthly premium which is calculated by an actuary. However, instead of paying out of a bank account or using a check, clients pay in Bitcoin from their crypto wallet. When a policyholder dies, their family will receive the value of the claim in Bitcoin. Townsend says life insurance is integral to any functioning society because it protects families from financial devastation in the event of an untimely death. But while most life insurance policies use dollars or another type of fiat-currency, Meanwhile operates in Bitcoin in an attempt to maximize returns and limit the risk of inflation over the course of a client's lifetime, he said. 'It may feel like the dollar is not as sure a store of value as it might have been in the past,' Townsend says, highlighting that inflation decreases the value of the dollar over time. 'So the idea of storing some value for your kids... in this global, censorship-resistant, decentralized, uncontrollable currency in Bitcoin is very attractive.' Some people might argue that it is risky to take out a life insurance policy in Bitcoin because the currency's price is extremely volatile, often gaining or losing thousands of dollars within the span of a few hours. However, Townsend says that, while Bitcoin can be unpredictable in the short-term, it has historically provided returns in the long-term. The company produces revenue by lending out clients' Bitcoin to large financial institutions like crypto exchanges and market makers over the course of one to two years, Townsend says. The company expects to make a 3% return on these loans, he says, which will partially be used to pay out clients and the rest is used to fund expenses. Meanwhile is not the only company that offers crypto holders options for financial planning. BitcoinIRA is a company that allows people to access Bitcoin investment in their retirement accounts. Townsend says Meanwhile will use the money raised in this round to expand globally and make sure their products are compliant with regulations. Meanwhile's Series A follows a $20.5 million raise from 2022 led by Sam Altman, CEO of OpenAI, and Lachy Groom, one of the first employees at payments company Stripe. This story was originally featured on Sign in to access your portfolio
