When can I borrow more against my Bitcoin?
For an existing Bitcoin-backed loan, the BTC price where your LTV falls to a trigger level is loan ÷ (BTC collateral × trigger LTV). Borrowing back up to a higher refill LTV at that price multiplies the loan by refill ÷ trigger. Example: 1 BTC backing a $20,000 loan reaches 15% LTV at $133,333; borrowing back to 20% adds $6,667 and moves the liquidation price (at 80% LTV) from $25,000 to $33,333. Interest is not included. Not financial advice. Free, no login.
Formula
Trigger price = loan ÷ (BTC × trigger LTV). New loan = loan × refill LTV ÷ trigger LTV. Cash out = new loan − loan. Liquidation price after = new loan ÷ (BTC × liquidation LTV). Rung n trigger price = rung 1 price × (refill ÷ trigger)^(n − 1).
Worked example
1 BTC, $20,000 loan, 15% trigger, 20% refill, 80% liquidation: rung 1 at $133,333 borrows $6,667 (loan $26,667, liquidation price $33,333); rung 2 at $177,778 borrows $8,889 (loan $35,556); rung 3 at $237,037 borrows $11,852 (loan $47,407).
Frequently asked questions
When can I borrow more against my Bitcoin loan?
When BTC has risen enough that your loan-to-value ratio falls to the level you are comfortable re-borrowing from. The trigger price is loan ÷ (BTC collateral × trigger LTV). Example: 1 BTC backing a $20,000 loan reaches 15% LTV at $133,333. Borrowing back up to 20% LTV at that price adds $6,667, for a $26,667 balance. This ignores interest, which raises the trigger price if it accrues to the balance. Not financial advice.
How much can I borrow when my LTV drops?
At the trigger price, the new loan is the old loan × (refill LTV ÷ trigger LTV). From 15% back to 20% that is one third more: a $20,000 loan becomes $26,667. Each later rung does the same, so the loan grows by the same multiple as the price.
Does re-borrowing raise my liquidation price?
Yes. More debt on the same collateral means a higher liquidation price. Right after borrowing back to 20% LTV with an 80% liquidation LTV, BTC can fall 75% from that price before liquidation, the same buffer you had at 20% before. In the example, the liquidation price moves from $25,000 to $33,333.
Is it safe to keep re-borrowing as Bitcoin rises?
Each rung borrows near a higher price, so a later crash starts from higher debt. The calculator replays real historical crashes from the re-borrow price to show how the bigger loan would have held up. Keep reserves to add collateral or repay. Not financial advice.
Links
Interactive calculator: enable JavaScript or open trybitstack.com.