- Client: International high-net-worth investor
- Property Value: Circa $10 million
- LTV: 30%
- Term: 12 months
- Interest Rate: Subject to lender terms
- Security: Cryptocurrency holdings
Enness was approached by an international high-net-worth investor seeking finance for a property valued at approximately $10 million. The client held significant digital asset investments and wanted to use their cryptocurrency holdings to support the acquisition without liquidating the portfolio or relying solely on traditional property finance.
The main challenge was structuring a facility around an asset class that can experience significant price volatility. The lender therefore needed to assess the nature of the collateral and establish appropriate requirements for the duration of the facility.
Enness worked with a specialist lender to structure a 12-month facility at 30% loan-to-value. The arrangement included a defined margin call threshold and an agreed lock-up period for the cryptocurrency collateral, forming part of the agreed terms for the underlying assets.
A custodial arrangement was also established with a specialist crypto custodian. This provided a defined framework for holding the digital assets throughout the financing period and formed part of the overall security structure.
By structuring the borrowing at 30% loan-to-value, the facility reflected the client’s requirement for liquidity alongside the lender’s requirements for cryptocurrency collateral. The facility was agreed for a 12-month period, allowing the client to proceed with their property financing strategy without immediately selling their digital assets.
This case demonstrates how crypto mortgage solutions can provide an alternative source of liquidity for clients with substantial digital asset holdings. Crypto-backed finance requires careful consideration of the collateral, loan-to-value, custody arrangements and potential market movements, with terms varying significantly between lenders.
Enness specialises in arranging finance for clients with complex asset profiles, including those holding cryptocurrency alongside traditional investments and property. Our crypto finance specialists can explore available lending structures based on the client’s circumstances, the assets held and the intended use of funds.
If you hold substantial cryptocurrency assets and are considering using them to support a property purchase or raise liquidity, speak to a crypto 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.
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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.
