BitBonds: VanEck’s Plan to Cut U.S. Debt Costs With BTC-Linked Bonds

VanEck’s Matthew Sigel has proposed “BitBonds,” a 10-year hybrid debt instrument combining 90% U.S. Treasuries and 10% Bitcoin exposure, to help refinance $14 trillion in government debt. The concept offers investors inflation protection and asymmetric upside, while reducing Treasury borrowing costs. Gains above 4.5% yield would be split between bondholders and the government.

The U.S. needs to refinance $14T in debt. Investors want protection from inflation + asset debasement.
Enter BitBonds:
📎 90% Treasury + 10% BTC
📎 Full BTC upside until 4.5% annual return.
📎 50/50 BTC upside split thereafter
An aligned solution for mismatched incentives. https://t.co/gmkKLs7PsO pic.twitter.com/rZEJZ1Fb2B

— matthew sigel, recovering CFA (@matthew_sigel) April 15, 2025