A Tax-Efficient Path to Property Ownership
In a growing financial trend, Bitcoin holders are leveraging crypto-backed loans to purchase real estate — all without selling a single satoshi or triggering capital gains taxes. This innovative financing method is unlocking home ownership for the crypto wealthy, who often find traditional banks hesitant due to credit history or regulatory hurdles.
Mauricio Di Bartolomeo, co-founder of Ledn, notes that borrowing against Bitcoin isn’t considered a taxable event in most jurisdictions, unlike selling crypto which triggers capital gains.
“Borrowing using your Bitcoin as collateral doesn’t trigger capital gains taxes — you’re not selling the asset,” he explains.
How Bitcoin Loans for Real Estate Work
- Loan-to-Value (LTV): Most lenders offer up to 50% LTV. For example, to borrow $250,000, you’d post $500,000 in BTC.
- Speed: Ledn reports average funding times of 9.6 hours, far faster than traditional mortgages.
- Flexibility: No monthly repayments are required. Interest accrues over time, and you can repay or renew at will.
- Volatility Alerts: If BTC drops and LTV hits 80%, a portion is auto-liquidated to repay the loan.
The funds can be used for a down payment or entire property purchase — making it a viable route for international investors, digital nomads, and crypto entrepreneurs alike.
No Credit Check — Just Crypto
Unlike traditional banks, crypto lenders like Ledn and Xapo Bank don’t rely on credit scores. Instead, they depend on overcollateralization and the liquid nature of Bitcoin.
“Bitcoin is the world’s most pristine collateral — liquid, global, and tradable 24/7,” said Di Bartolomeo.
Ledn issued over $300 million in loans in Q1 2025 alone and expects to cross the $1 billion mark by year’s end. The firm claims that in 2024, clients earned 8x more in BTC gains than they paid in loan interest — and many withdrew excess collateral when BTC appreciated.
Crypto-Rich, House-Rich: The New Normal?
With confidence rising among Bitcoin holders and more banks like Xapo entering the lending market, Bitcoin-backed real estate purchases may soon become mainstream. These loans allow HODLers to stay invested in their best-performing asset while acquiring hard assets like property — all without selling and paying hefty taxes.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.