What happened
LBTC changes its yield source: from Bitcoin staking to a Bitwise covered call strategy with a 2,5% annual target.
Why it matters
The change affects the very source of LBTC's yield and links it to a new managed market strategy, yet its conditions and results are not yet disclosed in the available package.
Kraken Institutional announced support for Lombard's transition to a new yield source for LBTC. Instead of Bitcoin staking, an institutional covered call strategy managed by Bitwise Asset Management is being used; the target metric is stated as 2,5% annual yield in Bitcoin terms after expenses.
For LBTC holders, this signifies a change in the yield structure associated with the asset. The report also states that Lombard has spent the last two years developing the large-scale transfer of Bitcoin into on-chain formats, and Kraken is directly involved in the current transition.
The source is a Kraken Blog publication; the package provides only a meta-synopsis, not the full text of the article. Independent confirmation of the strategy's conditions, its risks, and actual yield performance is absent from the available data.
Confirmed facts
- Kraken Institutional supports Lombard's transition to a new yield source for LBTC.
- LBTC is transitioning from yield via Bitcoin staking to an institutional covered call strategy.
- The strategy is managed by Bitwise Asset Management.
- The target metric is 2,5% net annual yield in Bitcoin terms.
- Lombard has been engaged in transferring Bitcoin to on-chain formats at a large scale over the past two years.
- The source of the report is the Kraken Blog, published on August 13, 2026.
Context
The material is based on a single source—a meta-synopsis of a Kraken Blog post. There is no independent confirmation or full text of the article in the package.
What remains unknown
- How exactly is the covered call strategy structured and what risks does it pose for LBTC?
- How is the 2,5% net yield target calculated?
- When will the transition be completed and what are the practical conditions for LBTC holders?
- Are there independent data on actual yield performance after the transition?
Editorial context
Confidence: medium
The likely consequence is that LBTC's yield will depend not only on staking mechanics but also on the performance of the covered call strategy. The next observable signals will be the published transition terms and data on actual yield performance. Significant uncertainty remains regarding strategy risks, the methodology for calculating the metric, and the lack of independent verification.