Leveraging BTC for loans instead of selling

I've commented on a couple of threads and many people have PM'd me asking for details. So instead, I will share what I have learned so far here. I made many mistakes years ago - the same one others did. Sold some BTC when I thought "hey, I made money, I'll sell some!" (duh). I also did that stupid shit of thinking I could gain more by investing in crypto/shitcoins. Lessons learned...but here we are.

My Wife and I want to do a kitchen remodel. We have no debt (other than house), and I am not a fan of living in debt. I researched HELOC, Personal loans, etc. Our credit is stellar so that wasn't an issue. But I kept running in to "questionable" things that I just didn't feel good about.

Instead, I moved some BTC from cold storage to Coinbase and applied for their loan there (which is provided by Morpho). The APR they offered was 7.52% (but this changes, so you will want to keep an eye on it). The process was *insanely* easy and the money was in my account in seconds. I also figure out that if you keep a balance in USDC on Coinbase, it pays 4% APR, so I am doing that to offset the APR of the loan.

I created a google sheet you all can use/copy to model your own scenario: BTC Loan Calc

In my case, BTC would have to fall to ~$60k for the loan to liquidate, and that assumes I made no payments on the loan. I also have enough liquid cash/btc that if I "had to" I could quickly pay the loan down so that it doesn't liquidate. So it's not a huge risk for me. Instead, this was more about "how can I avoid paying taxes" and instead do what the 1% do and just leverage assets.

I've also added a section to the spreadsheet on "What if I take the loan and use that to buy more BTC". This may be a risk you are willing to take, but you need to closely watch the LTV and make sure you are making payments on the loan to keep the LTV down.

Obligatory Disclaimer: Do your own research! I am not a financial advisor.