Crypto Millionaires Tap Bitcoin Wealth for Property Deals

Early Bitcoin adopters are unlocking their crypto fortunes without tax penalties through collateralized lending platforms. By pledging BTC as security, these investors secure fiat loans to purchase properties while maintaining exposure to potential Bitcoin price appreciation.

The Tax Advantage Play

Ledn co-founder Mauricio Di Bartolomeo reveals the strategy's core benefit: "Borrowing against Bitcoin typically isn't a taxable event in most jurisdictions." This allows crypto holders to bypass capital gains taxes that would apply if they liquidated their holdings directly. The model proves particularly attractive for investors who bought BTC at lower prices.

【Key Mechanism】 • 50% loan-to-value ratio standard • Average funding time under 10 hours • No mandatory monthly payments • Excess collateral withdrawal during price surges

Borderless Banking for Digital Assets

The service has gained strongest traction in Latin America, the United States, and European markets. "Bitcoin's beauty as collateral lies in its borderless nature," Di Bartolomeo notes. Ledn processed over $300 million in Q1 2025 loans, projecting $1 billion by year-end.

——"They want to keep exposure to their best-performing asset while acquiring real estate," the executive explains——

Volatility Safeguards

Platforms implement automatic protections against Bitcoin's price swings. At 80% LTV thresholds, systems liquidate sufficient collateral to repay loans while preserving the underlying real estate transaction. Borrowers receive margin calls when LTV reaches 60%.

Credit Score Bypass

Traditional credit checks become unnecessary with overcollateralization. "Bitcoin trades 24/7 with deep liquidity—it's pristine collateral," Di Bartolomeo emphasizes. The approach particularly benefits crypto entrepreneurs whose wealth exists primarily in digital assets.

【Market Growth】 • Xapo Bank launched similar BTC-backed loans in March • $1 million maximum loan amounts available • 2024 clients earned 8x more from BTC appreciation than paid in interest

The New Wealth Preservation Strategy

As institutional adoption grows, more high-net-worth individuals view Bitcoin-collateralized loans as a way to monetize crypto holdings without sacrificing long-term positions. The trend reflects increasing sophistication in digital asset management strategies among crypto-native investors.