Lendasat DocsUnderstanding Borrowing
Learn why borrowing against your Bitcoin is smarter than selling, and how Lendasat makes it possible.
We've all been there. Needing cash, but preferring not to sell your Bitcoin - and for good reason, since hodling often proves to be the better choice when possible.
At Lendasat, we believe Bitcoin isn't something you sell. It's something to use!
The "Buy. Borrow. Die." Strategy
The ultra-wealthy rarely sell their assets. Instead, they borrow against them.
How the Rich Stay Rich
CEOs and billionaires don't pay themselves large salaries - that would mean income tax. Instead, they accumulate appreciating assets and borrow against them for liquidity. No sale, no tax, no loss of upside.
The Saylor Playbook
Michael Saylor and MicroStrategy famously stack Bitcoin and use it as a treasury asset. The strategy? Never sell. Borrow against it when needed. Let it appreciate forever.
| Traditional Wealthy | Bitcoiners |
|---|---|
| Buy stocks & real estate | Buy Bitcoin |
| Borrow against portfolio | Borrow against BTC |
| Never sell, never trigger taxes | Never sell, keep your sats |
| Pass wealth to next generation | Pass wealth to next generation |
Bitcoin has been "locked capital" for too long. Hodlers sit on appreciating wealth but can't use it without selling. Lendasat changes that - unlock liquidity while keeping your BTC exposure.
With Lendasat, your BTC stays in collateral secured by a 2-of-3 multisig while you unlock liquidity right now and pay back later. Same strategy the billionaires use - now available to everyone.
Why Borrowing Beats Selling
Selling Bitcoin
- Lose exposure to future upside
- May trigger capital gains taxes
- Compromise privacy via KYC exchanges
- Gone forever once sold
Borrowing Against Bitcoin
- Instant liquidity in stablecoins or fiat
- Continued exposure to BTC's long-term value
- Non-taxable event in most jurisdictions
- Your Bitcoin stays yours
How Much Can You Borrow?
| If BTC Price Is | You Want to Borrow | At 50% LTV | You Lock Up |
|---|---|---|---|
| $100,000 | $1,000 | $2,000 collateral | 0.02 BTC |
| $100,000 | $5,000 | $10,000 collateral | 0.10 BTC |
| $100,000 | $10,000 | $20,000 collateral | 0.20 BTC |
Your Bitcoin stays yours in a non-custodial 2-of-3 multisig vault. Repay at the end of the contract and reclaim your BTC.
What happens to your collateral?
| If BTC moves to... | Your 0.02 BTC is worth... | Result |
|---|---|---|
| $120,000 (+20%) | $2,400 | Still yours |
| $80,000 (-20%) | $1,600 | Still yours |
Can My Collateral Be Liquidated?
Yes, if the collateral value falls below a threshold or you fail to repay on time.
| LTV Level | What Happens |
|---|---|
| 50-70% | Safe zone - normal operation |
| 80% | Warning - consider adding collateral |
| 85% | Urgent warning - add collateral soon |
| 90% | Liquidation triggered |
To avoid liquidation:
- Repay your loan early, or
- Add more BTC collateral to reduce your LTV
Borrowing Step-by-Step
Create Account
Sign up on Lendasat and securely back up your seed phrase.
Browse Offers
Choose to request a loan and browse available lender offers.
Select Payout Method
Pick your preferred method: Stablecoin, Virtual Card, fiat, or Bringin.
Lock Collateral
Send your BTC collateral to a secure multisig escrow address.
Receive Funds
Get your loan disbursed to your wallet or card.
Repay & Reclaim
Repay at the end of the term and get your Bitcoin back.
All without selling. All without trusting a third party.