You own Bitcoin. You need Canadian dollars. You have two options — and the math matters.
Option A: Sell Your Bitcoin
Selling is simple. You sell on an exchange, receive CAD, and move on.
The problems:
1. Capital gains tax. In Canada, selling Bitcoin triggers a taxable event. 50% of your gain is included in income. On a $100,000 gain, that’s $50,000 added to your taxable income — potentially $20,000+ in taxes depending on your bracket.
2. You lose your position. If Bitcoin appreciates after you sell, you’ve permanently missed those gains.
3. Re-entry cost. When you want Bitcoin again, you pay fees and a potentially higher price to buy back in.
Option B: Borrow Against Your Bitcoin
With a Bitcoin-backed loan from DWM Canada, you pledge your Bitcoin as collateral and receive CAD — without selling.
The advantages:
1. No taxable event. Borrowing is not a disposition. You don’t trigger capital gains.
2. You keep your position. If Bitcoin appreciates, you benefit.
3. Repay and reclaim. At term end, repay the loan and your Bitcoin is returned.
The Math: $100,000 Bitcoin Position
Scenario: You need $50,000 CAD
| Sell $100K of Bitcoin | Borrow $50K from DWM Canada | |
| CAD received | $100,000 | $50,000 |
| Tax triggered | ~$20,000+ (capital gains) | $0 |
| Bitcoin position after | $0 | $100,000 (pledged) |
| Cost | $20,000+ in taxes | $6,000 (12% on $50K for 1 year) |
| Bitcoin upside retained | None | Yes |
Borrowing saves you the capital gains bill and keeps your Bitcoin working.
When Selling Makes Sense
– You no longer believe in Bitcoin’s long-term value
– Your cost basis is minimal (small capital gain)
– You need more than 50% of your Bitcoin’s value (beyond DWM’s LTV)
The Bottom Line
For long-term Bitcoin holders who need liquidity: borrow, don’t sell.
Ready to borrow? Apply at DWM Canada →
Need to build your Bitcoin position first? Buy Bitcoin at 1Bitcoin.ca →
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DWM Canada | Bitcoin Custody & Lending