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Bitcoin company's new financing approach: collateralized lending to leverage increased holdings
【BitPush】A well-known Bitcoin asset management company recently approved an interesting financing framework. In simple terms, they plan to use their held Bitcoin as collateral to borrow money, then use the borrowed funds to continue buying Bitcoin.
How exactly does it work? The framework sets several key conditions: a loan-to-value ratio of 50%, meaning that $1 million worth of Bitcoin can borrow up to $500,000; the loan uses an interest-only repayment mode, reducing repayment pressure; the maximum loan term is four years, providing ample operational flexibility; the total borrowing limit is strictly controlled within 20% of the company’s Bitcoin reserves, so the risk is not excessively amplified.
This plan is provided by an established lending platform, with a clear collaboration idea—through structured collateral loans, to open more flexible financing channels for Bitcoin holders. The company’s management stated that this strategy can meet short-term liquidity needs while supporting long-term accumulation goals, making it a good asset management choice in the current market environment.
This kind of innovation indeed reflects a new trend in crypto asset management: making good use of available assets and achieving efficient capital allocation through structured financial instruments.