One of the most common questions from Bitcoin holders exploring collateralized lending is simple: *how much can I actually borrow?*
The answer at DWM Canada is straightforward — but understanding the full picture, including how margin calls work and what it takes to stay in good standing, is essential before you put your Bitcoin to work. This guide breaks it all down.
The Core Formula
DWM Canada uses a 50% loan-to-value (LTV) ratio. This is the single most important number to understand.
Formula:
> Bitcoin Market Value × 50% = Maximum Loan Amount
Borrowing Power Examples
| Bitcoin Value (CAD) | Maximum Loan (50% LTV) |
| $25,000 | $12,500 |
| $50,000 | $25,000 |
| $100,000 | $50,000 |
| $200,000 | $100,000 |
| $500,000 | $250,000 |
| $1,000,000 | $500,000 |
These are maximum figures. You can borrow less than the maximum if you prefer a more conservative position — and many experienced borrowers do exactly that.
Why borrow less than the maximum?
Bitcoin trades in USD globally, but DWM Canada’s loans are denominated in CAD. The calculation is:
> BTC quantity × BTC/USD price × USD/CAD exchange rate = CAD value
Example:
– You hold 1.5 BTC
– Bitcoin is trading at $95,000 USD
– USD/CAD rate is 1.36
– CAD value = 1.5 × $95,000 × 1.36 = $193,800 CAD
– Maximum loan = $193,800 × 50% = $96,900 CAD
Use real-time pricing from a reputable source when doing this calculation — Bitcoin’s value fluctuates continuously, and so does your borrowing power.
Understanding Margin Calls
This is the part most borrowers need to understand clearly before they sign anything.
When you take a Bitcoin-backed loan at 50% LTV, there is a buffer between your loan amount and the full value of your collateral. That buffer exists to protect both you and DWM Canada if Bitcoin’s price falls.
Here’s how it works:
Suppose Bitcoin drops after you take out your loan. As the price falls, your LTV ratio increases — because the same loan is now a larger percentage of your (now smaller) collateral value.
When your LTV approaches a threshold defined in your loan agreement, DWM Canada will issue a margin call. This gives you options:
1. Add more Bitcoin collateral — deposit additional BTC to bring the LTV back down
2. Repay part of the loan — reduce the outstanding balance to restore the LTV ratio
3. Let collateral be liquidated — if you take no action, DWM Canada may liquidate enough Bitcoin to restore the LTV ratio or repay the loan
Margin call example:
– You pledge $100,000 CAD in Bitcoin and borrow $50,000 (50% LTV)
– Bitcoin drops 30%, your collateral is now worth $70,000 CAD
– Your LTV is now $50,000 / $70,000 = 71.4% — significantly above the 50% threshold
– A margin call is issued
– To restore 50% LTV: you need collateral of $100,000 CAD, or you need to repay until the loan is $35,000 (50% of $70,000)
The takeaway: Borrowing at the maximum LTV leaves little room for price movement. Consider borrowing conservatively — 30–40% LTV — so that normal Bitcoin price fluctuations don’t trigger a margin call.
How to Increase Your Borrowing Power
More Bitcoin = more borrowing power. It’s a linear relationship.
If your current BTC position doesn’t give you the liquidity you need, the answer is to grow your holdings over time. The most trusted way for Canadians to accumulate Bitcoin is through 1Bitcoin.ca — a FINTRAC-registered, Bitcoin-only brokerage with competitive rates and over 10,000 verified Canadian users.
Build your position systematically. As your BTC grows, so does your borrowing capacity — without any additional application, income verification, or credit review.
Stacking strategy:
Many sophisticated borrowers treat DWM Canada as the long-term destination for their Bitcoin — accumulating on 1Bitcoin.ca, moving holdings into DWM’s custody structure, and drawing on borrowing power as needed. The Bitcoin works for you instead of sitting idle.
What Doesn’t Affect Your Borrowing Power
For borrowers accustomed to conventional lending, this list is worth reviewing:
– Your credit score — irrelevant
– Your income — not considered
– Your employment status — doesn’t matter
– Your business revenue — not required
– Years of financial history — not asked for
DWM Canada’s model is purely collateral-based. Your borrowing power is your Bitcoin. Nothing more, nothing less.
Practical Borrowing Power Calculator
Here’s a quick reference for different Bitcoin allocations at common price levels:
If Bitcoin = $120,000 USD (~$163,000 CAD):
| BTC Held | CAD Value | 50% LTV Loan |
| 0.5 BTC | ~$81,500 | ~$40,750 |
| 1.0 BTC | ~$163,000 | ~$81,500 |
| 2.0 BTC | ~$326,000 | ~$163,000 |
| 5.0 BTC | ~$815,000 | ~$407,500 |
Note: BTC/CAD prices fluctuate. These are illustrative figures only.
Before You Borrow: A Quick Checklist
– [ ] Know your exact BTC holding (to 8 decimal places)
– [ ] Calculate current CAD value using live prices
– [ ] Determine how much you actually need — don’t borrow more than necessary
– [ ] Target a conservative LTV (30–40%) if you want margin call protection
– [ ] Understand your repayment plan before drawing funds
– [ ] Confirm the margin call thresholds in your loan agreement
Ready to See What Your Bitcoin Can Do?
Your Bitcoin is not a static store of value — it’s collateral that can unlock real-world liquidity without requiring you to sell.
Whether you need capital for real estate, business operations, or personal use, DWM Canada can fund you in 24–72 hours against your Bitcoin position.
Calculate your borrowing power and apply at DWM Canada
Don’t have enough Bitcoin yet? Start building your position at 1Bitcoin.ca — Canada’s trusted Bitcoin brokerage.