Bitcoin Loan Calculator: Canada
With bitcoin at C$107,225 (Canadian dollars), 1 BTC pledged at a 50% loan-to-value (LTV) secures a loan of about C$53,612. At the margin-call and liquidation levels set for Canada's regulated lenders (80% and 90% LTV), you would get a margin call if bitcoin fell to C$67,016 and be liquidated at C$59,569 — a fall of 44.4%. Since 2014, bitcoin fell that far at some point within the following 12 months in 28% of cases.
Live price · lender terms seen November 2026
| If bitcoin falls to | Change | Collateral worth | LTV | What happens |
|---|
LTV = loan ÷ collateral value. Liquidation price = price × starting LTV ÷ liquidation LTV (with interest added to the loan, it rises over the term). Simple interest; real lenders may charge fees, use different LTV steps and sell only part of your collateral. Not financial advice.
Bitcoin Lenders for Canadians
As published by each lender (seen November 2026). LTV: starting / margin call / liquidation. Terms change often: check before you borrow.
| Lender | LTV | Rate | Minimum | Custody | Re-uses your bitcoin? | Not available in |
|---|---|---|---|---|---|---|
| LednRates fall with loan size (11.49% under $250,000). | 50% / 70% / 80% | 9.25–11.49% | $500 | Custodial (third-party custodian) | May re-post collateral to its funding partners | US: CA, CT, HI, NV, ND, SD, TN, WA, DC. Canada: QC, NB, NS, SK |
| APX LendingTerm loans 3–60 months or a 5-year line of credit; also through Netcoins. | 60% / 80% / 90% | 10.49–12.99% | C$10,000 | BitGo Trust (cold storage, segregated) | No: barred by the regulator's decision | — |
| Shakepay (bitcoin line of credit)Line of credit launched August 2026; rate and limits depend on eligibility. | — / 80% / 90% | 9.5% | C$100 | Coinbase Custody (cold storage) | No: barred by the regulator's decision | — |
Tax (CRA)
The CRA treats crypto-assets as property. Pledging bitcoin as security while you keep ownership is generally not a disposition, and the loan isn't income. If the lender sells collateral in a margin call or default, that is a disposition: half of any capital gain is taxable (or all of it if you trade as a business). Interest is deductible under paragraph 20(1)(c) of the Income Tax Act only if the borrowed money is used to earn income from a business or property — not for personal use, and borrowing to buy more bitcoin is doubtful because bitcoin pays no income. In 2023 the CRA said that handing coins to a platform that may pledge, sell or lend them likely transfers ownership, so a loan that lets the lender re-lend your collateral could itself count as a sale. None of this has been tested in court for crypto-backed loans; get professional advice.
Rules and risks
Securities rules are provincial, coordinated by the Canadian Securities Administrators (CSA). Registered crypto trading platforms may not offer margin or credit or re-use client crypto (CSA Staff Notice 21-332), so bitcoin loans come from separate lenders. In October 2025 the CSA warned that crypto-backed lending may need securities registration or exemptive relief, and told Canadians to check its list. Two lenders hold that relief: APX Lending (Ontario Securities Commission, April 2025) and Shakepay Credit (Quebec's AMF, April 2026). Their conditions show what regulated means in Canada: bitcoin or ether collateral only, a margin call at 80% and liquidation at 90% LTV fixed for the loan, at least 95% of collateral with a third-party custodian, no re-lending of collateral, and a risk statement you must acknowledge. Ledn lends in most provinces outside that framework; Nexo left Canada in 2023, and most US lenders don't lend to Canadians. Collateral is not covered by CIPF.
Sources: CRA: crypto-asset guide · CSA: warning to crypto-backed lenders (Oct 2025) · CSA Staff Notice 21-332 · OSC: APX exemptive relief · AMF: Shakepay Credit decision. General information, not tax or legal advice.
Bitcoin Loans: FAQ
How does a bitcoin-backed loan work?
You hand your bitcoin to a lender (or lock it in a multisig or smart contract) as collateral and borrow cash or stablecoins against it, usually up to 50% of its value. You pay interest and get the bitcoin back when you repay. If the price falls and the loan grows too large compared with the collateral, the lender asks for more bitcoin or a repayment (margin call) and, if the loan-to-value keeps rising, sells some or all of your bitcoin (liquidation).
What is the liquidation price of a bitcoin loan?
Liquidation price = bitcoin price today × starting LTV ÷ liquidation LTV. At 50% and 90%, that is 55.6% of today's price: C$59,569 for a loan taken now. Interest added to the loan pushes it higher over time.
How likely is a liquidation?
Since 2014, bitcoin fell 44.4% or more below the starting price at some point within the next 12 months in about 28% of all start days. A lower starting LTV, adding collateral after a margin call or repaying early cuts that risk; the past doesn't predict the future.
Do you pay tax when you borrow against bitcoin?
Generally not when you borrow: pledging bitcoin while you keep ownership is not a disposition. A liquidation is. See the tax section below.
Related: profit calculator · bitcoin drawdowns · volatility · bitcoin tax by country · US lenders