> ## Documentation Index
> Fetch the complete documentation index at: https://docs.gomaestro.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Case Study: SmashFi × Sazmining

> How idle Bitcoin became a fixed 9% BTC yield, paid from real mining production.

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SmashFi, a platform managing Bitcoin for everyday holders, deployed Bitcoin on [Mezzamine](https://www.mezzamine.com/). Its capital financed [Sazmining](https://www.sazmining.com/)'s mining operation expansion. A fixed **9% annual BTC yield, paid in kind**, from real block production.

## The problem both sides had

Bitcoin has no native credit market. Holders reaching for yield route through substitutes — BTC-backed lending that pays in the borrowed asset, incentives that run out of runway, trading strategies that break when the regime turns. Miners have the opposite problem: mining is the only business that generates new Bitcoin, but turning customer demand into deployed machines fast enough usually means dollar debt that works against a Bitcoin-denominated business.

> "Most Bitcoin holders are very sensitive to risk, and for good reason: a lot of yield products in crypto have not ended well. So the question is always where the yield is actually coming from, whether it is sustainable, and whether it is tied to real activity."
> — Brian Paik, SmashFi

## The facility in numbers

| Metric              | Value                                                       |
| ------------------- | ----------------------------------------------------------- |
| Blended yield       | **9%** annual BTC yield, in kind, across facilities         |
| Borrowed (2026)     | 7 BTC of growth capital                                     |
| Loan-to-value       | 70%, secured by mining hardware and BTC                     |
| Mined (first fleet) | 2.1+ BTC in \~4 months — exceeding the facility's principal |
| Capital efficiency  | 15× vs. a standard BTC-backed loan                          |

*Source: Sazmining + Mezzamine on-chain records · As of Jul 9, 2026*

## What 2 BTC became

Within four months, the first facility's 2 BTC of financing turned into **57 PH/s of deployed hashrate across 211 machines**. The mechanism was capital recycling: each round of machines was sold and its proceeds rolled into the next batch, so the same 2 BTC compounded across six purchases (March 23–May 20, 2026) rather than being spent once.

**Repayments**: mining block production services the loan through on-chain contracts, secured by **first-lien collateral** and protected by delta-neutral hedging — see [Dynamic hedging](/concepts/dynamic-hedging).

<Note>
  Figures are historical program results as of July 9, 2026 — not a forecast, and past performance is not indicative of future results.
</Note>

## Read the full case study

The complete letter — the full structure, collateral waterfall, and why in-kind yield holds across cycles — is published on the research page.

<Card title="SmashFi × Sazmining — the full letter" href="https://gomaestro.org/research/smashfi-sazmining" horizontal>
  Mezzamine connected SmashFi's capital to Sazmining's operations — turning idle Bitcoin into productive capital generating 9% annual BTC yield.
</Card>

<Card title="Start onboarding" icon="arrow-right" href="/get-started/getting-started" horizontal>
  The structure in this case study is live in [Mezzamine Credit](/yield-vaults/offerings/mezzamine-credit) — participation begins with onboarding.
</Card>

<Info>
  Maestro Institutional is operated by Go Maestro Inc. and is intended for accredited investors
  and qualified allocators only. Access is permissioned and subject to eligibility verification,
  with KYC required where a vault's terms specify; it is not directed at retail investors. Bitcoin and
  Bitcoin-denominated yield products carry material market, counterparty, regulatory, and
  technology risks. Yield figures are net of fees and BTC-denominated; past performance
  is not indicative of future results. Custody options vary by vault and strategy; depending on
  the vault, investors deposit directly into vault contracts or through a qualified custodian
  (Anchorage Digital).
</Info>