Borrow Against Bitcoin Without Selling
Access your Bitcoin's value without selling your stack or triggering capital gains.
If you're considering selling Bitcoin to access liquidity, there's a better path forward. Loan My Coins introduces Bitcoin-to-Bitcoin lending options that let you borrow against your BTC while keeping your original stack intact.
In Short
- Keep your original Bitcoin: Borrow against your BTC without selling, maintaining your position and avoiding capital gains tax on your original stack.
- 95% LTV: Access up to 95% of your Bitcoin's value, receiving borrowed BTC upfront that you can deploy however you choose.
- No margin calls: BTC-denominated loans eliminate liquidation risk. Price volatility doesn't trigger forced sales.
- Tax efficiency: Sell borrowed BTC (current cost basis) instead of low-cost-basis Bitcoin to defer capital gains.
Why Selling Bitcoin Often Doesn't Make Sense
For long-term Bitcoin holders with low-cost-basis coins, selling creates several problems:
Capital Gains Tax
Selling Bitcoin you bought years ago means realizing significant capital gains. The tax implications can dramatically reduce your net proceeds.
Loss of Position
Once you sell, you've given up your Bitcoin position. If Bitcoin continues to appreciate, you've locked in a loss relative to holding.
Re-entry Risk
Buying back later means higher cost basis, tax events, and the psychological difficulty of re-entering at potentially higher prices.
Opportunity Cost
Your original stack represents years of accumulation. Selling means starting over with a new, higher cost basis.
How BTC-to-BTC Lending Works
Instead of selling your Bitcoin, you can borrow against it. Here's how it differs from traditional approaches:
Traditional Approach: Sell Bitcoin
- Trigger capital gains tax on original stack
- Lose your Bitcoin position entirely
- Start over with higher cost basis if re-entering
- Miss future appreciation on sold coins
BTC-to-BTC Lending Approach
- Keep your original Bitcoin stack intact
- Receive borrowed BTC (95% LTV) upfront
- Sell borrowed BTC if needed (current cost basis)
- Repay in BTC after 12 months or roll annually
- Reclaim your original stack when repaid
Example: Stake 10 BTC (bought at $10k), receive 9.5 BTC as loan. Sell the borrowed 9.5 BTC for liquidity while your original 10 BTC stack remains untouched. Repay 10 BTC to reclaim your original position.
Why Borrow Instead of Sell
Preserve Your Stack
Your original Bitcoin remains in place. No sale means no capital gains on your original cost basis, and you maintain your long-term position.
Tax Efficiency
Sell borrowed BTC (current market value) instead of low-cost-basis Bitcoin. This defers capital gains and can reduce your overall tax burden.
No Liquidation Risk
Because loans are BTC-denominated, Bitcoin price volatility doesn't trigger margin calls or forced liquidations. Your loan terms remain stable.
Capital Efficiency
Access up to 95% of your Bitcoin's value while keeping 100% of your stack. Deploy borrowed capital into investments or opportunities without selling.
Ready to Explore Your Options?
Use our calculator to model how borrowing against Bitcoin compares to selling in your specific situation. See projected outcomes, tax implications, and repayment scenarios.
Important: Loan My Coins acts solely as an introducer. All loans and agreements are entered into directly with an independent loan provider. We do not provide financial or tax advice. Consult with your tax professional for advice specific to your situation.