BermudAir raises $1M via fintech to fund expansion

BermudAir (Q2, Bermuda) has taken an “innovative funding approach” to raise $1 million via a tokenized bond issue executed on the Obligate on-chain capital markets platform, saying it is the first airline to use fintech to raise capital. The issuance was conducted in collaboration with XBTO Group, a global digital asset and crypto finance company.

“The financing needs of our business are rapidly evolving,” said Adam Scott, founder and CEO of BermudAir. “Having this type of innovative financing in the range of options available works for us. The efficiency of using fintech to raise capital in this way is clear.”

The transaction was issued on the public Polygon blockchain, with all payments in USDC, a stablecoin pegged to the US dollar and backed by dollar reserves, including cash and US Treasuries. The 15-month bond offered investors an annual yield of 15%.

BermudAir is the first airline to leverage cryptofinance capabilities with XBTO and Obligate to raise capital in new tokenized credit markets, with XBTO acting as lead organizer and bookrunner.

Secure Air Operator Certificate (AOC) as of August 2023, BermudAir has grown to serve five U.S. airports, Baltimore International, Fort Lauderdale International, Orlando International, white plainsAND Boston. It’s early to add Halifax AND Toronto Pearson to the network. The courier handles a couple of E170S. Shortly after its launch, the airline abandoned the plans to be a business class-only operator, describing the decision to start offering economy class seats as “a strategic shift” in response to “evolving market dynamics”.

Scott said the debt financing provides an opportunity to diversify BermudAir’s capital management strategy. The capital will fund operational and resource improvements for the airline, including route expansion, to meet growing demand and consolidate its position in new markets.

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