The Bitcoin Line of Credit (BLOC) allows you to unlock the purchasing power of your Bitcoin without selling it. Unlike the Self-Repaying Mortgage (SRM), the BLOC does carry liquidation risk since Bitcoin is the only collateral securing the loan. If the price of Bitcoin falls too far, your collateral may be liquidated. This article explains how BLOC works, its benefits, and how Loyalty Levels improve your borrowing terms.
Key Benefits of BLOC
- Unlock Bitcoin value: Borrow against Bitcoin while still holding ownership.
- No credit checks or income verification: Approval is instant and based only on your Bitcoin collateral.
- No taxable events: Because you are borrowing against Bitcoin, not selling it.
- Dynamic interest rates: Adjustable rates help keep borrowing costs low.
- Flexible use of funds: You can freely use the borrowed funds without restrictions.
BLOC Highlights
- No Credit Checks
- No Income Verification
- No Taxable Events
- No Rehypothecation
Loyalty Level Benefits
Your borrowing terms improve as your PRN Loyalty Level increases. Higher levels unlock lower interest rates and higher loan-to-value (LTV) ratios.
| Level | Interest Rate | LTV Ratio |
|---|---|---|
| Basic | 16% | 40% |
| Silver | 14% | 50% |
| Gold | 13% | 60% |
| Diamond | 11% | 70% |
Why Use BLOC?
The Bitcoin Line of Credit is ideal if you want liquidity without selling your Bitcoin, but still want flexibility in how you use your funds. It’s a powerful way to access capital without creating a taxable event, while still holding exposure to Bitcoin’s long-term upside.