Leveraged Financing
Increase digital asset exposure without liquidating existing holdings.
Leveraged financing allows institutional borrowers to pledge existing digital assets, draw USD or stablecoin liquidity and deploy the proceeds into additional exposure. Facilities can be structured around the borrower’s target leverage, collateral profile and investment horizon, with fixed or open terms depending on the lender.
Leverage is highly sensitive to LTV, funding cost, collateral treatment and liquidation thresholds.
We compare institutional balance sheets to identify structures that maximize capital efficiency while preserving appropriate risk controls.
Increase position size without selling
Structures matched to collateral and borrower
Fixed and open-term options
Leveraged financing can increase market exposure while allowing the borrower to retain its existing position.
Proceeds may be used to acquire additional digital assets, express a directional view or improve capital efficiency across a broader portfolio. Institutional facilities can also offer defined terms, negotiated margin mechanics and direct counterparty support rather than fully automated liquidation processes.
Leverage magnifies both gains and losses.
A decline in the value of pledged or acquired assets can increase LTV and trigger collateral top-ups, partial repayment or liquidation. Borrowers should evaluate the all-in cost of capital, margin thresholds and liquidity available to meet collateral calls under stressed market conditions.
An institution holds $10 million of BTC and wants to increase its BTC exposure.
At an illustrative 60% LTV, the borrower pledges the existing BTC and receives $6 million in USD or stablecoin financing. Those proceeds are used to acquire additional BTC, increasing total market exposure from $10 million to $16 million.
If BTC appreciates, the larger position increases the borrower’s upside participation. If BTC declines, losses are amplified and the facility may approach its agreed margin or liquidation thresholds.
Actual leverage, LTV and margin mechanics vary by lender, collateral and market conditions.