- Nationality/Residency: UK national and UK resident
- Loan Amount: Circa £550,000
- Loan-to-Value (LTV): 50%
- Interest Rate: Flexible facility
In this case, Enness was approached by a UK national and resident seeking to raise capital against their Bitcoin portfolio. The client held their Bitcoin in cold storage and wanted to explore ways of accessing liquidity without having to sell their digital assets.
The main challenge was the limited number of lenders willing to accept Bitcoin as collateral. Traditional lenders generally do not accept cryptocurrency as security, while specialist providers may apply different interest rates, lending parameters or security requirements.
The security and custody arrangements for the client's Bitcoin were also important considerations. The client wanted a financing structure that provided access to the required capital while allowing the underlying digital assets to remain subject to the agreed lending and custody arrangements.
Enness identified a suitable specialist lender and sourced a flexible facility of approximately £550,000 at 50% LTV. The structure was considered in light of the client's requirements and the lender's security and custody protocols.
The transaction progressed efficiently, with suitable terms sourced and introductions between the client and lender arranged within approximately one week. This enabled the client to access liquidity against their Bitcoin holdings while retaining their underlying digital assets, subject to the agreed lending and custody arrangements.
This case demonstrates the specialist nature of crypto finance and the importance of identifying lenders able to consider cryptocurrency-backed lending. Enness has access to more than 1,000 lenders across global markets, allowing specialist financing structures to be explored for clients with non-standard assets.
For individuals or corporate clients holding substantial cryptocurrency portfolios, Enness can help explore financing options based on their asset position and liquidity requirements. If you or your clients are considering crypto-backed lending and are finding it difficult to identify suitable options, speak to a finance specialist to discuss your requirements.
ENNESS DOES NOT PROVIDE ADVICE OR RECOMMENDATIONS ON CRYPTOCURRENCY, OTHER DIGITAL ASSETS, SECURITIES-BACKED LENDING OR INVESTMENTS. LENDER INTRODUCTIONS ARE UNREGULATED. CRYPTOCURRENCY VALUES CAN BE HIGHLY VOLATILE. CRYPTO-BACKED BORROWING MAY INVOLVE MARGIN CALLS, ADDITIONAL COLLATERAL REQUIREMENTS OR REPAYMENT IF ASSET VALUES FALL. LENDING TERMS, CUSTODY ARRANGEMENTS AND AVAILABILITY ARE SUBJECT TO LENDER CRITERIA AND INDIVIDUAL CIRCUMSTANCES.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
