The moral, ethical and rational case for borrowing against our #bitcoin
Why we do it
Best practices
Standards
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Why we do it:
Fundamentally it’s a moral and ethical choice
We refuse to fund state incompetence and abuse
If we sell sats for $cad, we have a capital gain to declare
While declaring is a choice, we refuse to offer the state any reason to target us
If we need to access fiat liquidity to cover expenses or equipment purchases, we borrow it by posting our bitcoin as collateral
We expense the interest, we never sell the bitcoin and we never incur a capital gain
This only makes sense because bitcoin is appreciating far faster than our interest expense on the loans
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Best practices:
We only post a small portion of our farm treasury as collateral
We never borrow more than we need
We aim for LTV of 25% or less in order to remain conservative and capable of withstanding major drawdowns without needing to re-collateralize
We only trust our bitcoin with lenders that pass a rigorous vetting process and meet our high lending standards
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Lending standards:
No rehypothecation
Transparent UTXO monitoring
Perpetual loan rollover
48hr collateral withdrawal with transparent fees
Insured balances
Transparent custody protocols
Deposits and payments to/from Canadian bank via wire
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Lending against your bitcoin is not without risks but when done intelligently and rationally, it can be a powerful tool to fund farm operations, never sell your treasury and defund the state
Questions? DM us
#nostr #bitcoin #fiat #money #farm #farmer #tools #defundthestate #freedom
