Bitcoin Yield Platform Raises $5 Million in Seed Funding, Valued at $30 Million

The developer of the Bitcoin yield platform HoneyB, Nectar Group, has completed a $5 million seed funding round led by Portal Ventures, with participation from Peer Venture Partners, Anchorage Digital Ventures, an unnamed family office, and angel investors. Co-founder and CEO Josh Gordon stated that the funding round utilized a Simple Agreement for Future Equity (SAFE) combined with a one-to-one token warrant structure, resulting in a post-money valuation of $30 million, with no investors obtaining board seats or advisory roles.

HoneyB aims to help Bitcoin holders earn yields on their holdings. In its first strategy, users borrow stablecoins against Bitcoin collateral and invest them in yield strategies involving U.S. Treasuries, fixed income, credit, gold, volatility, and options. The Bitcoin collateral can be held through on-chain smart contracts or a tripartite arrangement involving borrowers, lenders, and custodians, with Anchorage Digital and BitGo providing custody services. HoneyB has also deployed infrastructure on Ethereum, Sui, Solana, and Arch Network. Gordon mentioned that the underlying investment products target an annualized return of about 10%, with HoneyB aiming to provide users with an annualized return of approximately 2% to 4% on their Bitcoin holdings after deducting borrowing costs and fees.

The first strategy will utilize a fund under Simplify Asset Management, which manages approximately $13.5 billion in assets, with Alphaledger responsible for managing and tokenizing the fund, and Amber Capital SPC as the issuer. Gordon identified Bitwise, Lombard, Solv, and Sentora as competing platforms, noting that HoneyB differentiates itself by integrating custody, lending, and investment services on a single platform and allowing institutional partners to offer their products under their own brands. HoneyB plans to launch in Q4 2026, with its first product aimed at institutional investors outside the U.S., followed by plans to introduce institutional products in the U.S. and retail products expected in Q1 2027. Its business model involves charging platform fees on deployed capital, and the current funding will be used for product development, custody and financing integration, legal compliance, and distribution. Nectar was established in October last year and currently has over 12 employees.

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