Who is Loan My Coins for?

• For Bitcoiners who’ve reached “Terminal Bitcoin” you’ve stacked as much as you can, sold assets, and maxed out your savings. At that stage, growing your position further requires capital efficiency: staking Bitcoin to borrow Bitcoin.

How does Loan My Coins work?

• Stake your bitcoin to borrow bitcoin at 95% LTV, with a 5% fee paid upfront. Sell the borrowed bitcoin (current cost basis) to fund strategies like investing in assets that may outperform bitcoin. Repay the principal after 12 months, or roll for up to 5 years, to reclaim your stack.

• Example: Stake 10 bitcoin, borrow 9.5 bitcoin ($950,000 at $100,000/bitcoin; 5% fee upfront). Sell for $950,000, invest, and repay 10 bitcoin to retrieve your 10 bitcoin.

Why not sell my Bitcoin outright?

• Selling low-cost-basis Bitcoin (e.g., bought at $1,000/bitcoin) triggers capital gains taxes. Loan My Coins defers taxes by letting you sell borrowed bitcoin (no gain, no tax), keeping your original stack untaxed.

• Example: Selling 10 bitcoin bought at $1,000 for $100,000/bitcoin could mean taxes on $990,000 in gains. With Loan My Coins, sell 9.5 borrowed bitcoin for $950,000 (no tax) and invest.

How is this different from bitcoin-to-fiat loans?

• Because this is a BTC-to-BTC arrangement—you receive borrowed bitcoin upfront and return it later—there are no margin calls or liquidations tied to market volatility. That can mitigate certain counterparty and forced-liquidation risks associated with fiat-backed crypto loans.

• Low 5% upfront fee: More affordable than 10%+ fiat loan rates. Take a look at our comparison page for more detail.

What’s one strategy I can use?

• Unlock low-cost-basis bitcoin to invest in assets that may outperform bitcoin, like bitcoin treasury companies, without immediate taxes. Our co-founder Peter is doing this with a portion of his bitcoin, targeting significant returns. If your investments beat bitcoin’s growth plus 5%, you are obviously ahead.

• Note: Use only a portion of your stack for this targeted strategy.

What’s the loan term?

• The loan term is 12 months, renewable annually for up to 5 years, letting you extend your strategy while deferring taxes.

Do I need to outperform Bitcoin?

• For the outperformance strategy, your investments should beat bitcoin’s growth plus the 5% fee and any potential capital gains on the trade you’re putting on.

• If bitcoin grows 20%, your $950,000 investment needs >25% return +CGT to profit after repaying 10 bitcoin.

Is selling borrowed Bitcoin taxable?

• No. The borrowed bitcoin’s cost basis equals its sale price (e.g., $950,000 for 9.5 BTC at $100,000/bitcoin), so there’s no taxable gain.

Why not invest directly?

• Direct investments may require selling bitcoin (triggering taxes) or limit choices (e.g., ISAs). Loan My Coins offers tax deferment, flexibility, and minimal risk.

Is it for HODLing Bitcoin?

• No. Borrowing to HODL bitcoin costs 5% without upside. Loan My Coins is for strategies like investing to outperform bitcoin.

How risky is it?

• Ultra-low risk vs. fiat loans: minimal counterparty risk (you hold borrowed bitcoin), no margin calls, no liquidations. The main risk is investments underperforming or counterparty failure to return staked bitcoin, but the upfront bitcoin delivery lowers this significantly.

What if I can’t repay the Bitcoin after 12 months?

• If you don’t repay the loan, Meanwhile may retain your staked bitcoin. This could also be a taxable event, potentially triggering capital gains tax on your staked bitcoin. 

• You hold 9.5 bitcoin ($950,000) upfront, minimizing risk vs. fiat loans. No margin calls or liquidations apply. Plan to repay or roll for up to 5 years by staking an additional 5% per year.

Who is eligible for a Loan My Coins loan?

• Available worldwide to individuals and entities with at least 1 BTC to stake. During referral onboarding we collect your name, email address, and phone number, plus optional country and X (Twitter) username, to make the introduction to the independent loan provider. We do not collect financial details or ID documents. Any required KYC/AML is completed directly with the loan provider.

Why choose LMC over other Bitcoin loan providers like Unchained or Ledn?

• LMC's BTC-to-BTC model scores an estimated 10 on Zone21's risk framework (Low/Green), outperforming Unchained (29) and Ledn (49) by avoiding liquidation/oracle risks and offering 95% LTV (nearly double their 50%), you can see more detail on this on our comparison page.

• Because this is a BTC-to-BTC arrangement, the price of bitcoin is irrelevant to repayment terms — there is zero chance of margin calls or liquidations. You receive the full BTC value of your collateral upfront (less the 5% fee), which means there is effectively no counterparty risk. Even if the loan provider ceased operations, you would still hold the borrowed BTC and could write off your original cost base as a capital loss, resetting it while retaining your side of the trade.

What happens if Bitcoin's price changes during my loan?

• Price volatility doesn't trigger margin calls or liquidations—your loan is fixed in BTC terms (repay the original amount staked). If BTC rises, your staked collateral appreciates; if it falls, you still hold the loaned BTC upfront for flexibility. This stability is a key edge over competitors like Strike (margin at 70%), where fiat conversions add currency risk.

Can businesses or institutions use Loan My Coins?

Yes, we support personal, businesses and other styles of entity like trusts globally, ideal for bitcoin treasuries or corporate strategies. Minimum 1 BTC applies, with the same low-risk features.