Every loan we make accumulates more Bitcoin.
Reserve isn't just a lending company.
It's a Bitcoin treasury with a lending engine attached.
Two engines. One destination.
Engine 1 - Lending Product
Reserve provides Bitcoin-backed loans at 9% effective APR - below the industry standard of 9.5–18%. Borrowers deposit Bitcoin as collateral at 50% LTV and receive USD or GBP. Lenders earn 6% yield. Reserve keeps 1.5% spread plus 1.5% origination fee on every loan. This is steady, predictable income that funds operations and fuels treasury growth.
Engine 2 - Bitcoin Treasury
A portion of every dollar Reserve earns is converted to Bitcoin and held long-term. But the real accumulation happens during market volatility. When Bitcoin drops and borrowers are liquidated, Reserve captures the excess collateral - acquiring Bitcoin at distressed prices. Bear markets aren't a risk to this model. They're the accelerant.
Three sources of Bitcoin accumulation
Source 1 - Profit Conversion
Reserve allocates a percentage of monthly EBITDA to Bitcoin purchases. This starts at 50% in Year 1 and ramps to 90% by Year 5 as the business scales and operational costs become a smaller share of revenue. Every profitable month adds Bitcoin to the treasury.
Source 2 - Liquidation Events
When Bitcoin's price drops significantly and a borrower fails to top up collateral, the loan is liquidated. The lender is repaid in full. Reserve retains the excess Bitcoin - the difference between what the lender is owed and the total collateral value. At a 10% annual liquidation rate on a $100M loan book, this generates approximately 118 BTC per year.
Source 3 - Operational Cashflow
As the loan book scales, spread income and origination fees generate significant cash. Rather than accumulating fiat reserves, Reserve converts operating surplus into Bitcoin on a systematic basis - effectively dollar-cost-averaging with business cashflow.
How the treasury is structured
Foundational treasury held long-term. No intention to sell. Our core conviction in Bitcoin as the ultimate store of value.
Targeted fiat cushion for dollar-cost-averaging into BTC and maintaining lending capacity to meet loan demand.
Working capital for payroll, licensing, and operations. Sized to cover 12+ months of expenses at any given time.
Opportunistic allocation to vetted yield strategies that generate additional Bitcoin returns without compromising custody or security.
Every allocation decision is made to accumulate more Bitcoin.
The compounding advantage
Most Bitcoin-backed lenders exist to earn spread. Their business model is simple: borrow cheap, lend expensive, keep the difference. Reserve does that too - but it's not the point.
The point is what we do with the difference.
Every dollar of profit that converts to Bitcoin at $80,000 could be worth multiples of that in five years. Every liquidation event that captures Bitcoin during a bear market is acquiring an asset that historically recovers to new highs. The lending product generates the cashflow. The treasury captures the asymmetry.
This is why Reserve's equity story is fundamentally different from a traditional lending business. A bank's value is a multiple of its earnings. Reserve's value is a multiple of its earnings plus the mark-to-market value of a growing Bitcoin treasury. As Bitcoin appreciates, the treasury appreciates - independent of loan book growth.
The longer we operate, the larger the treasury. The larger the treasury, the more we can self-fund lending at lower rates. The lower our rates, the more borrowers we attract. The more borrowers, the more revenue. The more revenue, the more Bitcoin.
This is not a business plan. It's a flywheel.
Back the Bitcoin treasury with a lending engine.
Reserve is raising a $10M Equity SAFE Note.
Request Investor Materialstoby@reservebtc.co