In a rapidly evolving digital-asset landscape, institutional Bitcoin strategies are increasingly under the spotlight. One company gaining attention is (AQSE:HODL) B Hodl, which recently expanded its holdings to 155 Bitcoin as it pushes toward becoming one of the largest Bitcoin treasuries on the Aquis exchange. But as the company grows its position, investors are asking an important question: How does B Hodl generate yield while managing risk in such a volatile market?
On The Watch List, CEO Freddie New sat down with host Ricky Lee to unpack the company’s approach to yield generation, treasury security, and long-term sustainability.
A Self-Custodial Approach to Bitcoin Yield
With yield strategies across the crypto industry often tied to lending, leverage, or third-party platforms, each carrying its own risks, Freddie New was quick to emphasize that B Hodl chooses a different path.
“The way that we generate revenue from our Bitcoin is via the Lightning Network, and we do it in an entirely self-custodial and secure way,” he explained.
The Lightning Network, Bitcoin’s second-layer payment system, facilitates fast, low-cost transactions by routing payments through liquidity channels. To keep those channels functioning efficiently, liquidity must be locked into them, this is where B Hodl steps in.
Their business model is straightforward:
- Raise equity
- Buy Bitcoin
- Deploy that Bitcoin into Lightning Network channels
- Earn routing fees, similar to how Visa and Mastercard earn interchange fees
Crucially, this setup avoids the typical counterparty risks associated with lending or staking.
“If anything goes wrong and the channel is closed, the Bitcoin comes directly back to us,” New emphasized. “We’re not lending it to anyone.”
Best-in-Class Safeguards and Risk Management
Risk management is a major focus for B Hodl, and according to New, the team was intentionally built around deep experience surviving crypto bear markets.
The company’s core safeguards include:
Ultra-lean operations
B Hodl maintains very low operating expenses. Following its IPO, the company reports four years of cash runway, giving the team breathing room to continue building during market downturns.
Multi-signature, multi-jurisdiction cold storage
All Bitcoin held by the company is protected through a multi-sig, multi-device, multi-jurisdiction security protocol, the same one used by well-established UK exchange CoinCorner.
No counterparty exposure in yield generation
Because Lightning Network channels are non-custodial, capital always returns to B Hodl’s wallet when channels close.
Targeting Consistent, Predictable Bitcoin Yield
When asked about the future contribution of Lightning yield to operating cash flow, New revealed early results that exceeded expectations.
“Our initial results have been throwing off about 6% annualized yield,” he said. “We were initially modeling slightly lower than that.”
Maintaining a consistent yield through different market environments is a priority, and B Hodl is already preparing multiple complementary strategies on the Lightning Network. Only the first of these strategies has been publicly announced so far, with additional details coming soon.
Looking Ahead
As institutional interest in Bitcoin infrastructure deepens, B Hodl is positioning itself as a disciplined treasury manager focused on security, sustainability, and real utility on the Lightning Network.
The combination of self-custody, low operating risk, and Lightning-based revenue could set a new benchmark for publicly listed Bitcoin treasury businesses.
For updates and deeper insights into the company’s growth, visit https://bhodl.com/.
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