How much BTC would a collateral top-up require?

Compare the additional pledge needed for a chosen LTV with the reserve you actually have.

A top-up moves BTC into collateral

You add BTC you already own outside the loan to the BTC pledged to your lender. You do not sell that BTC, and the transfer does not reduce your dollar debt. It increases the collateral backing the loan.

Start at $100,000 per BTC

Suppose you owe $60,000 and have 1 BTC pledged. At an assumed $100,000 per BTC, your collateral is worth $100,000. Your LTV is $60,000 ÷ $100,000 = 60%.

Work backward from the target

For an illustrative 40% LTV target, $60,000 of debt needs $150,000 of collateral: $60,000 ÷ 0.40 = $150,000. At $100,000 per BTC, that is 1.5 BTC. You already pledged 1 BTC, so the extra amount is 0.5 BTC.

The extra BTC must come from your reserve

With 0.75 BTC outside the loan, moving 0.5 BTC to the lender leaves 1.5 BTC pledged and 0.25 BTC unpledged. You still own 1.75 BTC in total. Your debt stays $60,000; LTV falls to 40% because collateral increases to $150,000.

With only 0.2 BTC outside the loan, you cannot supply the full 0.5 BTC. Adding all 0.2 BTC gives 1.2 BTC pledged, worth $120,000. LTV becomes $60,000 ÷ $120,000 = 50%. You are still 0.3 BTC short of the collateral needed for 40%.

Model the transfer as a separate decision

This calculation does not execute a transfer, establish accepted collateral, or account for transfer timing. Price and debt may change. Keep pledged BTC and reserve BTC separate in the planner, then inspect the reserve-impact results in Floor Stress.

Compare price stress, read about threshold prices, or check the LTV formula.

Top up from 60% to 40% LTV

BTC price: $100,000
Loan balance: $60,000
BTC already pledged: 1 BTC

Your current LTV

$60,000 ÷ $100,000 = 60%

Your 1 pledged BTC is worth $100,000.
Collateral needed for 40% LTV

$60,000 ÷ 0.40 = $150,000

At $100,000 per BTC, that is 1.5 BTC in total.
Extra BTC you need to add

1.5 BTC − 1 BTC = 0.5 BTC

You already pledged 1 BTC. The remaining 0.5 BTC must come from outside the loan.

The 40% target is illustrative. Your lender sets its own requirements.

Enough reserve: move 0.5 BTC to the lender

You start with 1 BTC pledged and 0.75 BTC outside the loan.

Pledged BTC: before → after: 1 → 1.5 BTC
Unpledged BTC: before → after: 0.75 → 0.25 BTC
Total BTC you still own: 1.75 BTC
Debt: unchanged: $60,000
LTV: before → after: 60% → 40%

Target reached. The lender now holds $150,000 of BTC collateral against the same $60,000 debt. You have 0.25 BTC left outside the loan.

Not enough reserve: you only have 0.2 BTC to add

You need 0.5 BTC, but have only 0.2 BTC outside the loan. Here is the result if you pledge all of it.

Pledged BTC: before → after: 1 → 1.2 BTC
Unpledged BTC: before → after: 0.2 → 0 BTC
Total BTC you still own: 1.2 BTC
Debt: unchanged: $60,000
LTV: before → after: 60% → 50%

Target not reached. $60,000 ÷ $120,000 = 50% LTV. Another 0.3 BTC would be needed to reach 40% at this price and debt balance.

Both examples hold price and debt constant. They illustrate collateral transfers, not an instruction to pledge your reserve.

Open Floor Stress →

This is a worked example. Opening the planner does not transfer these assumptions.