- Client: International high-net-worth investor
- Property Value: Circa $10 million
- LTV: 30%
- Term: 12 months
- Interest Rate: Competitive
- 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 be comfortable with the nature of the collateral while ensuring that appropriate protections were in place throughout the term 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, providing the lender with additional protection against movements in the value of 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 a relatively conservative loan-to-value, Enness was able to help balance the client's requirement for liquidity with the lender's requirements around the volatility of cryptocurrency collateral. The facility was agreed on competitive terms for a 12-month period, allowing the client to proceed with their property financing strategy without needing to immediately sell 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.
Disclaimer:
This case study is for information and illustrative purposes only and does not constitute financial advice or a recommendation. Cryptocurrency is a volatile asset class and its value can fluctuate significantly. Crypto-backed borrowing may involve margin calls and the potential loss of collateral if agreed requirements are not maintained. Enness does not give advice on Securities Backed Lending, investments or cryptocurrency investments, and lender introductions are unregulated. Clients should seek appropriate independent professional advice regarding their 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.
