For investors who hold Bitcoin and want exposure to property, there's a straightforward strategy: borrow against your BTC rather than sell it. A Bitcoin-backed loan gives you access to cash without triggering capital gains* or giving up long-term exposure to Bitcoin’s upside. This approach is especially relevant when you're looking to move quickly on a property opportunity.
At Vield, we’ve supported borrowers using Bitcoin to secure financing for real estate—whether as a deposit for an investment property, to finalise a land purchase, or to bridge short-term funding gaps.
Why Borrow Against Bitcoin for Property?
In a competitive real estate market, timing matters. A traditional mortgage can take weeks for pre-approval, and banks won’t consider Bitcoin holdings when assessing borrowing capacity. Selling Bitcoin to free up cash may not be ideal either—it can trigger a taxable event, and you may be selling at the wrong time in the cycle.
A Bitcoin-backed loan offers:
- Access to liquidity
- No credit checks
- No need to sell your Bitcoin
- Repayment flexibility
It’s a clean, asset-backed financing solution, allowing you to stay in the market while deploying cash where it’s needed most.
Example: Securing a Property Deposit Using 4 BTC
One client recently used Vield to secure funds for a property deposit on a two-bedroom apartment in Melbourne’s inner west. The opportunity came up quickly, and the buyer didn’t want to miss out due to delays in liquidating assets or waiting on a traditional lender.
- Collateral: 4 BTC
- BTC Price at Time of Loan: $130,000 AUD per BTC
- Loan Amount: $156,000 AUD (LTV = 30%)
- Use of Funds: 10% deposit and legal fees
- Outcome: Property secured, with the buyer planning to refinance later through a traditional lender once settlement is complete
Due to client confidentiality, we cannot disclose personal details. However, the scenario highlights how crypto-backed financing can be used tactically to participate in real estate markets without offloading assets or introducing delays.
Loan Mechanics: How It Works
- Collateral Deposit
BTC is securely transferred to Vield’s custody partner (secured by Utila MPC). - Loan Disbursement
Based on the current BTC value, we provide up to 50% LTV, usually within 24 hours. - Loan Repayment
Borrower repays with interest. Once cleared, BTC is returned. - Market Monitoring
If BTC drops and the loan exceeds the healthy LVR threshold, the borrower may need to top up the collateral or repay a portion of the loan.
This structure ensures capital security for both the borrower and lender.
Key Considerations Before Using BTC for Property
- Volatility Risk
If Bitcoin drops significantly in value, your loan may go into default before your collateral is liquidated. In the event of a default, borrowers are typically given 30 days to remedy the loan — either by adding more collateral or repaying part of the loan — before any liquidation process begins. At Vield, we are proud to have maintained a record of zero defaulted loans, reflecting the strength of our client support and proactive risk management. - Short-Term Strategy
BTC loans are ideal for deposits or bridging finance. If you’re looking for long-term property funding, plan for refinancing with a bank later. - Tax Planning
Consult a tax adviser. Avoiding a sale means no capital gains* are triggered immediately, but tax obligations can still apply later.
Who This Works Best For
This strategy is most effective for:
- Crypto investors with a strong long-term view
- Time-sensitive buyers needing access to capital quickly
- Those looking to build a mixed portfolio of digital and physical assets
- Investors who don’t want to give up future upside for short-term liquidity
How Vield Can Help
Using Bitcoin to secure a real estate investment is no longer theoretical—it’s happening. With crypto-backed loans, you can participate in property opportunities without selling down your Bitcoin stack.
At Vield, we’re seeing more clients integrate their crypto wealth into their broader investment strategies. Whether it’s to bridge funding for a deposit or unlock liquidity for a renovation, crypto-backed lending is proving to be a practical tool for real estate-minded investors.
If you're holding Bitcoin and planning your next move in property, it may be worth considering whether your digital assets can help you secure something more permanent—without leaving the market behind. For more information, book a meeting with our team or contact us today.
* Borrowing against your Bitcoin does not typically trigger a capital gains tax (CGT) event, as there is no disposal of the asset. However, tax treatment may vary depending on your jurisdiction and individual circumstances. We recommend consulting a qualified tax adviser.
More Use Cases:
