Can you guys comment on Bitcoin backed loans (through Lendn and Strike)? From what I understand it is basically like a home equity loans on your bitcoin. The way it is explained they are for a year and can be refinanced. They also allow you to pay off the loan when the bitcoin appreciates. Just curious what that looks like from a tax standpoint if that would create a taxable event.
Also, I was also curious on the SDIRA side if you could leverage this to buy real estate, or more bitcoin. From what I understand there is no credit check and if you do not pay the loan or your liquidity drops to below 50% there is a margin call and they take your bitcoin. It really sounds like a non recourse loan. Please elaborate if this would be allowed in a SDIRA.