USBC: the same manager, a radically different fee model.
USBC's Bitcoin treasury relationship with Hyrcanian Asset Management shows why a DAT benchmark must track amendments, not just current headline rates. The relationship moved from a combined asset-based and performance-fee structure to performance-only compensation with a high-water mark and clawback framework.
Timeline
Original manager economics
USBC entered into a digital-asset management agreement for discretionary treasury management of its Bitcoin strategy. Public disclosure later summarized the original economics as a 1% asset-based management fee plus a 25% performance fee.
Agreement amended and restated
USBC replaced the original agreement with an Amended and Restated Digital Asset Management Agreement. The asset-based fee component was eliminated and the performance component was increased.
Performance-only compensation
The manager became solely entitled to a performance fee equal to 33% of net realized gains and periodic mark-to-market changes generated by the options strategy. The revised structure incorporated a high-water mark, annual reconciliation and clawback mechanics.
Relationship remains operationally relevant
USBC continued to disclose Hyrcanian as the appointed manager for the Bitcoin options program, with a material portion of the Bitcoin treasury pledged for options trading activity.
Benchmark lesson
“Fee percentage” is not a stable attribute of a manager relationship. A current benchmark should treat compensation architecture as versioned data: asset-based fee, performance fee, hurdle / high-water mark, reconciliation, clawback, payment asset and reporting obligations can all change while the provider relationship continues.
Before / after
- Original: 1% asset-based management fee + 25% performance fee.
- Amended: no asset-based fee; 33% performance fee.
- Additional controls: high-water mark, annual cap/reconciliation and clawback.
- Relationship status: manager continued to appear in 2026 public filings.
Primary public sources
Public-source factual research only. No legal, fairness, fiduciary or investment opinion.
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