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Why miners borrow instead of selling
A miner's costs are relentless and denominated in fiat — electricity, hosting, payroll, debt service, new rigs — while the revenue arrives as Bitcoin. The instinct is to sell mined BTC to cover the bills. But selling has two costs: you give up the upside if Bitcoin appreciates, and a sale is generally a taxable disposal that realizes capital gains. Borrowing against the treasury sidesteps both — you fund operations with cash while keeping the coins, and a loan is generally not a taxable event the way a sale is. We cover that mechanism in depth in borrowing against Bitcoin without selling. The same logic that makes loans attractive to long-term holders applies doubly to miners, who are effectively forced sellers if they don't have another source of liquidity.
Two ways to finance a mining operation
When miners raise debt, it's almost always one of two structures:
| BTC-treasury collateral loan | ASIC / hashrate financing | |
|---|---|---|
| Secured by | Your mined Bitcoin | The mining hardware or its production |
| Typical cost | ~4–12% (varies by lender/market) | ~13–28% all-in, often ~18-month terms |
| Typical LTV | 40–70% | Often sub-50% (hard to margin-call) |
| Best for | Miners holding a BTC treasury | Miners without large reserves who need rig capital |
| Main risk | BTC price drop → margin call / liquidation | Hardware value falls, loan goes underwater; tougher to unwind |
If you already hold Bitcoin, the treasury-collateral route is almost always the cheaper capital, and it's the market this site tracks. ASIC and hashrate financing exists to solve a different problem — getting capital to miners who don't yet have reserves — and it's priced accordingly. A few lenders now blend the two, accepting hashrate, infrastructure and Bitcoin in one collateral package.
The risk that's unique to miners: double exposure
Every Bitcoin-backed borrower faces liquidation risk if the price falls. Miners face it twice over. A sharp drawdown lowers the value of your collateral — pushing your loan-to-value toward the liquidation threshold — at the very same moment it cuts your mining revenue, since each block reward is suddenly worth less in fiat. The two squeezes hit together: exactly when you'd need to add collateral or pay down the loan, your cash flow is thinnest. That correlation is why miner lending should be more conservative than a passive holder's, not less.
Terms a miner should weigh
- LTV and liquidation level. Lower is safer given your double exposure. Know the exact price that triggers a margin call and the price that triggers liquidation.
- Custody. Your treasury is your balance sheet — you don't want it rehypothecated (re-lent) by the lender. Favor segregated, non-rehypothecated custody, or collaborative multisig where you keep a key. See how we weight this in our risk methodology.
- Speed and flexibility. Operational borrowing is time-sensitive (a payroll run, an electricity bill, a hardware deal). Funding speed and flexible draw/repay terms matter more than for a passive holder.
- Rate and fees. Compare the all-in cost, not the headline rate — origination and admin fees can move the real number. The comparison table shows rate, LTV, liquidation level, custody and fees for every lender we track.
- Jurisdiction and regulation. If you operate a registered business, a regulated lender with insured, audited custody simplifies your accounting and counterparty risk.
Which lenders suit miners
Several lenders we track work well for borrowing against a mined treasury. There's no single "best" — it depends on whether you're optimizing for regulation, custody control, or cost:
Regulation & insured custody
- APX Lending runs a program aimed specifically at North American miners — segregated, insured, non-rehypothecated custody, regulated in Canada, with relatively fast funding
- Good fit if you run a registered operation and want a clean counterparty
Keep-your-keys custody
- Unchained uses collaborative multisig — you hold a key, so your treasury can't be rehypothecated or lost in a lender failure
- Good fit if custody control is your top priority for a working balance sheet
Other CeFi lenders in the comparison table — including Arch and Ledn — also lend against BTC treasury; weigh their rate, LTV, liquidation level and custody the same way. For larger facilities, see best Bitcoin-backed loans for $100,000+, since many lenders price down by loan size.
A note on ASIC and hashrate financing
If you don't hold enough Bitcoin to borrow against, specialized providers offer financing secured by the rigs themselves or by future production. This unlocks capital a treasury loan can't — but be clear-eyed about the trade-offs: it's materially more expensive (often roughly 13–28% all-in), terms are usually shorter (around 18 months), and because ASICs are hard to margin-call, the 2022 downturn pushed many of these loans underwater when hardware values collapsed. We don't rank ASIC/hashrate lenders — the market is specialized and opaque — but miners should know the option exists, and should treat the higher rate as the price of capital without a BTC balance sheet. If you do have treasury, compare it against a much cheaper collateral loan first.
Step by step: borrowing against your mining treasury
- Size the need conservatively. Borrow what operations require, not the maximum your BTC allows — your double exposure means a smaller loan is a much bigger safety margin.
- Model a revenue-slump crash. Use the liquidation calculator to find your liquidation price, then stress-test it against a scenario where mining income is also down.
- Compare lenders on rate, LTV, liquidation level, custody and funding speed in the comparison table; read the risk rating for any lender you're considering.
- Confirm terms at the source. Rates and miner-specific programs change — verify on the lender's own site before committing (every row links to it).
- Borrow, then monitor LTV against both prices and production — and keep a buffer you can post quickly.
FAQ
Why borrow against mined BTC instead of selling it?
Selling gives up future upside and is generally a taxable disposal. Borrowing funds operations while keeping the coins, and a loan is generally not a taxable event the way a sale is. This is general information, not tax advice — confirm with a professional.
Treasury loan or ASIC financing — which is cheaper?
If you hold Bitcoin, a treasury-collateral loan is almost always cheaper (single-to-low-double-digit rates) than ASIC/hashrate financing (~13–28% all-in). ASIC financing exists for miners without reserves and is priced for that.
Why is liquidation riskier for miners?
A price crash lowers your collateral value and your mining revenue simultaneously, squeezing you from both sides right when adding collateral is hardest. Borrow at a low LTV and keep a buffer.
Which lenders work with miners?
Among lenders we track, APX Lending runs a regulated miner-focused program, and Unchained offers keep-your-keys collaborative custody; other CeFi lenders also lend against treasury. Compare terms in the table before deciding.
How much can I borrow against my treasury?
Up to the lender's maximum LTV (commonly 40–70%), but miners are usually better served borrowing well below it to absorb a downturn.
Compare lenders that work with miners
Rate, LTV, liquidation level, custody and fees for every lender we track — independently verified, with a source link on every row.
Open the comparison →