Borrowing against Bitcoin to mine — when it is a tool, when it is a trap

A holder who refuses to sell Bitcoin to buy miners will eventually be offered a loan. Sometimes that is a tool. Sometimes it is a trap. The tool case is narrow. The coins stay in a custody arrangement the holder can diligence. The lender is independent of the advisory firm and of the hardware desk. Loan-to-value, liquidation process, rehypothecation, and jurisdiction are understood in writing. Use of proceeds is sized to a power tariff that already works, not to a hope that Bitcoin’s next move will save a bad site. Debt service sits inside treasury policy, not beside it. The trap case is common. Leverage on a depreciating box, at a retail grid tariff, with a lender whose custody and liquidation terms were not read. A drawdown then forces the sale the holder was trying to avoid. Past Bitcoin price is not a plan. Cloud hashrate and guaranteed-yield wrappers are not a substitute for this analysis. NexusArc introduces an independent Bitcoin-backed credit path through Firefish. We do not lend. We do not broker securities. We do not take collateral. If selling a slice of Bitcoin is cleaner than a loan, we will say so. Growing the stack without selling is a treasury question first — and a mining question only if the watts work.