Cryptocurrencies

Celsius Network Announces 6.2% APY Earnings on Bitcoin Holdings

Ever since cryptocurrencies have crept into the mainstream, startups have been finding unique ways to leverage these assets and make them attractive to customers. In 2018, Celsius Network did just that with their HODL & Earn program, which manages more than $1 billion in crypto assets today. Now, Celsius customers in the United States can earn an even better return on their Bitcoin with the platform now sporting a 6.2% APY on holdings up to 5 BTC.

Previously, international customers could earn up to 6.2% APY on their first Bitcoin if they choose to earn in CEL rewards, while other payouts earned a lower base rate. However, American customers are not currently able to earn CEL rewards on non-CEL assets. Thus, the recent adjustment allows these stateside customers to still enjoy that higher rate paid out in Bitcoins. Meanwhile, those U.S. customers with more than 5 Bitcoins will earn the current base rate of 4.51% APY on the rest of their balance.

As for the other aspects of Celsius’ HODL & Earn feature, there is no minimum deposit required for earning. Additionally, users will always have access to their holdings and can make a withdrawal at any time without penalty.

Also notable is that interest is paid out weekly (although the stated rates are annualized). As Celsius Network CEO Alex Mashinsky remarked, “Our goal has always been to give our customers as much value as possible. Now all Celsius customers can access the industry’s highest rate for BTC and the industry’s lowest rates to borrow dollars on the Celsius platform with no minimums, no lockups, and no fees, this is the definition of doing well after you do good.”

This increase to Celsius’ Bitcoin interest rate isn’t the only news the company has made this year. Recently the startup took to the crowdfunding platform BnktotheFuture to seek $15 million in equity investment. That was later upped to $17 million, and the campaign’s page shows a total of $20 million invested with two days left. According to said page, the funding round currently has 982 participants.

While the 6.2% APY is certainly appealing, it’s worth noting that 5 Bitcoins are currently valued at more than $56,000 as of this writing. That said, with Celsius having no minimum, it seems that even those without five figures in Bitcoin can still take advantage of this offer. Of course, given Bitcoin’s volatility and the fact that these APY rates can change at any time, those seeking out this deal should consider the risks. But, for crypto enthusiasts planning on a HODL strategy anyway, Celsius’s program could amount to a great deal.

Other Articles by Jonathan Dyer