New financial product with BTC-backed bond model
A BTC-backed bond parameters
Bond Size
$100M
Taxable conduit revenue bond face amount.
Fixed Coupon
5.00%
Paid semi-annually over a 3-year tenor.
BTC Collateral
$160M
About 1,904.76 BTC pledged at closing.
Coverage Guardrails
130% / 110%
Margin-call threshold and hard-floor liquidation.
Equity Kicker
20%
Lender participation above the $150K strike.
All-In Hurdle
5.51%–5.60%
On principal or net proceeds, including overhead.
Debt service comes from the borrower’s external cash flows, while the BTC remains segregated as collateral unless the coverage guardrails are breached. That single idea makes the structure feel more like institutional credit and less like a speculative lending pool.
Who does what in the deal
Issuer
Who issues the bond
- Issues a taxable conduit revenue bond into a familiar capital-markets wrapper.
- Keeps the structure non-recourse to taxpayers.
- Provides the public-finance shell investors already understand.
Borrower
Who brings the BTC collateral
- Pledges roughly 1,904.76 BTC into segregated qualified custody.
- Receives about $98.3M in net proceeds after closing costs.
- Services debt from external cash flows while preserving most BTC upside.
Bondholder
What investors are buying
- Receives a 5.00% fixed coupon and maturity-defined repayment profile.
- Starts with 160% collateral coverage and explicit enforcement triggers.
- Shares in 20% of BTC appreciation above the $150K kicker threshold.
The economic terms
Core Terms
The core deal terms
Closing Costs
What it costs to close
Annual Hurdle
What it costs to carry each year
What happens if BTC falls or keeps rising
How collateral coverage changes as BTC moves
| Scenario | BTC Price | Collateral Value | Coverage | Status | Kicker |
|---|---|---|---|---|---|
| Severe crash | $40,000 | $76.2M | 76% | Liquidation | — |
| Deep stress | $50,000 | $95.2M | 95% | Liquidation | — |
| Stress | $60,000 | $114.3M | 114% | Margin Call | — |
| Entry price | $84,000 | $160.0M | 160% | Safe | — |
| Strong gain | $130,000 | $247.6M | 248% | Safe | — |
| Kicker trigger | $150,000 | $285.7M | 286% | Kicker Active | $0 at threshold |
| Bull run | $200,000 | $381.0M | 381% | Kicker + Coupon | $19.0M |
| Major bull | $250,000 | $476.2M | 476% | Kicker + Coupon | $38.1M |
What triggers a liquidity call
Why its not simple crypto loan
Selling BTC or borrowing against it
| Sell BTC or use a simple crypto loan | BTC Asset Swap conduit bond | |
|---|---|---|
The protection rules investors
Liquidation floor
110%
Automatic liquidation below roughly $57,750/BTC in the reference model.
Margin-call trigger
130%
Trustee intervention begins below roughly $68,250/BTC.
Coverage reset goal
160%
Borrower cures back to the opening protection level within 7 business days.
Upside-sharing strike
$150K
Lender participation activates only above the agreed BTC threshold.
How the weekly BTC reference is set
The trustee calculates a 5-day average BTC close each Friday at 5:00 PM ET.
When the margin call goes out
If coverage slips below 130%, the borrower receives a formal margin call.
How the borrower can cure the breach
The borrower can post additional BTC or cash collateral to restore coverage back to 160% or better.
When liquidation can start
If coverage breaks the hard floor, the collateral can be liquidated without waiting for the cure period.
Enforcement Order
Who gets paid first if collateral is sold
| 1 | Trustee, custodian, legal, and transfer costs. |
| 2 | Outstanding accrued interest owed to bondholders. |
| 3 | Bond principal repayment up to the $100M face amount. |
| 4 | Equity kicker, if BTC is above the strike at enforcement or maturity. |
| 5 | Outstanding conduit-related fees and fund contributions. |
| 6 | Residual BTC or cash returned to the borrower. |
Why each stakeholder has a reason to care
For Bondholders
A fixed-income story with built-in upside
For Borrowers
Liquidity without selling core BTC
For The Platform
A structure that can become a real product
Questions serious readers will ask right away
Want to turn this bond concept into a launch-ready product?
