Arch Lending co-founder says Bitcoin holders should borrow against it, never spend it

June 1, 2026

Jackson Alton Hinkle

3 min read

The affluent do not sell their assets. They borrow against them. Himanshu Sahay, co-founder and CTO of Arch Lending, says Bitcoin (BTC) holders should be doing the exact same thing, instead of spending it on coffee, rent, or pizza.

Sahay co-founded Arch Lending in early 2022 with CEO Dhruv Patel. The firm makes overcollateralized crypto-backed loans against Bitcoin, Ethereum (ETH) and Solana (SOL), raised $5 million in 2024, and keeps client collateral in qualified custody without rehypothecation.

He sat down with TheStreet Roundtable to argue that Bitcoin’s destiny is as a reserve asset, not a transactional currency, and that the right retail strategy is the same one private banks use with gold and real estate: never sell, always borrow against.

Bitcoin as a reserve, not a currency

Sahay rejects the consumer-payments framing that has gained traction as the Lightning Network has matured and agentic commerce has grown.

“I’m actually for a different view. I’m of the view that Bitcoin should be a reserve asset, not a currency. Yes, it can be used as a currency today with the Lightning Network and you can go pay for your coffee downstairs. But my view is that you should hold it as a reserve asset, just like you would hold gold or real estate.” said Sahay.

The idea is gaining institutional weight. VanEck projects a single Bitcoin could be worth $21 million by 2049 if it holds a 25% compounded annual growth rate. And in March 2025, President Trump signed an executive order establishing a U.S. Strategic Bitcoin Reserve, a sign that Washington is starting to treat Bitcoin the same way.

The private banking playbook

Sahay’s argument is lifted directly from how private banks advise their wealthiest clients.

“In the world of private banking, once you get to a certain level of assets, you never sell them. You always borrow against them in a stable currency and then you use that for any expenses you need, any investments you need. But your asset that’s growing will always continue to be your reserve asset.” said Sahay.

Instead of selling Bitcoin and triggering a taxable event, you pledge it as collateral and borrow dollars or stablecoins against it. You do have to move the Bitcoin out of self-custody to borrow, but the asset keeps appreciating while you spend the loan.

Trending on TheStreet Roundtable

Why spending Bitcoin is the worst move

On May 22, 2010, Laszlo Hanyecz used 10,000 Bitcoin to buy two Papa John’s pizzas, a moment the community now celebrates every year as Bitcoin Pizza Day. At the time, those coins were worth roughly $41. At today’s prices, they would be worth more than $700 million. As of writing, a single Bitcoin traded around $71,380.

That is the opportunity cost Sahay is warning about: spending an asset that, by his math, has been doubling roughly every two years.

“Bitcoin’s CAGR in the last five years is about 35%. Obviously, that will compress as Bitcoin becomes more mature. But it’s not going to be a stable asset at any point, and I don’t think it should be.”

This story was originally published by TheStreet on Jun 1, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.

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