Bitcoin-Backed Loans in Michigan (2026)
7 of the 7 Bitcoin-backed loan lenders we track serve Michigan, with rates from 7.25% APR. Here is who lends in Michigan, who doesn't, and what each offers.
Michigan taxes a Bitcoin sale as ordinary income at its flat 4.25 percent rate on top of federal capital gains, so borrowing against BTC rather than selling can defer that combined tax hit. With no crypto-specific lending regime in the state, access comes down to which nationally operating lenders are licensed to serve Michigan residents.
Availability verified August 1, 2026 · Verified daily · Michigan tax and regulatory review July 22, 2026
Sell or borrow in Michigan: the tax math
Selling Bitcoin in Michigan can trigger the flat 4.25 percent state income tax plus federal capital gains tax, while borrowing against BTC is not a sale and so is not itself a taxable event.
Michigan levies a flat 4.25 percent individual income tax for the 2026 tax year, with no graduated brackets. The state has no separate or preferential capital gains rate, so a long-term gain from selling Bitcoin is taxed as ordinary income at the same 4.25 percent. That state tax applies on top of any federal capital gains tax owed on the sale.
Important: not tax or legal advice
The tax and regulatory information on this page is general information, not tax, legal, or investment advice, and the rates shown are illustrative top-of-schedule figures, not a calculation of what you personally would owe. borrowonbitcoin.com is published by Sypher Capital; we are a publisher and affiliate referral source, not a lender, broker, registered investment advisor, tax preparer, or law firm. The state and federal figures here are compiled from public sources, including IRS Revenue Procedures, state departments of revenue and taxation, state statutes, and the Tax Foundation, and are current only as of the tax year shown; the sources are linked at the foot of this page. Tax and licensing law change, sometimes mid-year, and how any of it applies to you depends on your income, filing status, residency, cost basis, holding period, local taxes, and other facts this page does not capture, so your actual result can differ materially. The tax treatment of Bitcoin-backed loans is itself unsettled and still developing. Borrowing against Bitcoin carries its own risks, including forced liquidation of your collateral. Lender availability and a state's rules can both change; confirm current eligibility with the lender, and confirm your own tax situation with a CPA or qualified tax professional, before acting on anything here.
Michigan tax and regulatory facts for the 2026 tax year, last reviewed July 22, 2026. Sources are listed at the foot of this page.
Lenders available in Michigan
| Lender | APR | Max LTV | Custody | Eligibility note | Review |
|---|---|---|---|---|---|
 Arch (Standard) | APRfrom 7.25% | Max LTVup to 60% | CustodyQualified custodian | From $5,000 | Learn More |
 SALT | APRfrom 7.49% | Max LTVup to 70% | CustodyLender-held | From $5,000 | Learn More |
 Strike | APRfrom 7.75% | Max LTVup to 50% | CustodyLender-held | From $10,000 | Learn More |
 Ledn | APRfrom 9.25% | Max LTVup to 50% | CustodyQualified custodian | From $1,000 | Learn More |
 Figure | APRfrom 9.76% | Max LTVup to 75% | CustodyLender-held | Minimum on request | Learn More |
 APX Lending | APRfrom 9.99% | Max LTVup to 60% | CustodyQualified custodian | US loans paid in USDC · $25k min | Learn More |
 Unchained | APRfrom 14.18% | Max LTVup to 50% | CustodyCollaborative multisig | Commercial only · entities · $150k min | Learn More |
Estimate your rate in Michigan
Borrowing $100,000 against 3.18 BTC ($200,000) is 50% LTV. BTC reference ≈ $62,800.
6 lenders serve Michigan at this size and LTV, lowest effective APR first. Effective APR includes origination fees.
SALTLowest APRFigureArch (Standard)APX LendingStrikeLednWhy lender coverage looks the way it does in Michigan
Michigan has no crypto-specific lending law or BitLicense-style regime. It regulates money transmission under the Money Transmission Services Act (Act 250 of 2006), administered by the Department of Insurance and Financial Services, and firms that hold or transmit customer funds, including crypto, generally must obtain a money transmitter license, though the Act does not expressly define virtual currency. That framework governs custody and transfer rather than Bitcoin-backed lending, so availability of Bitcoin-backed loans is broadly nationwide, subject to each lender's own multistate licensing and general consumer-lending and usury rules.
Bitcoin and crypto in Michigan
Michigan has moved toward a more crypto-friendly legislative posture. House Bill 4087, introduced in February 2025 by Representatives Bryan Posthumus and Ron Robinson, would let the state treasurer allocate a share of certain state funds into Bitcoin and other digital assets, and it advanced to a second reading in September 2025. As of mid-2026 the reserve bill remains pending and has not been enacted, so it signals intent rather than settled law.
Lender availability above reflects each lender's stated state coverage, which we verify daily. This page is information, not legal or financial advice, and a lender's coverage or a state's rules can change, so confirm current eligibility with the lender when you apply.
Frequently asked
Does Michigan tax profits from selling Bitcoin?
Yes. Michigan treats capital gains as ordinary income and taxes them at its flat 4.25 percent individual income tax rate for 2026, with no preferential long-term rate. That is separate from and in addition to any federal capital gains tax on the sale.
Is taking a Bitcoin-backed loan a taxable event in Michigan?
Borrowing cash against Bitcoin you continue to own is generally not a sale, so it does not by itself trigger Michigan income tax or federal capital gains tax. Tax can still arise later if collateral is sold or liquidated, so treat this as general information and confirm your situation with a tax professional.
Are Bitcoin-backed loans available to Michigan residents?
Michigan has no crypto-specific lending statute, so availability depends on which national lenders hold the licenses needed to operate in the state. Crypto firms that hold or transmit Michigan customers' funds generally must comply with the state's Money Transmission Services Act, administered by the Department of Insurance and Financial Services.
Can I get a Bitcoin-backed loan in Michigan?
Yes. 7 of the Bitcoin-backed lenders we track serve Michigan, with starting rates from 7.25% APR. They include Arch (Standard), SALT, Strike, Ledn, and others.
Which lenders offer Bitcoin-backed loans in Michigan?
Arch (Standard), SALT, Strike, Ledn, Figure, APX Lending, Unchained all serve Michigan according to their stated coverage, which we verify daily.
Are any Bitcoin loan lenders not available in Michigan?
No. Every Bitcoin-backed loan lender we track serves Michigan.
Sources
- Michigan uses a flat 4.25 percent individual income tax rate for 2026 and does not apply a preferential capital gains rate. · taxfoundation.org
- Michigan's official determination sets the 2026 individual income tax rate. · michigan.gov
- Money transmission in Michigan is regulated under the Money Transmission Services Act (Act 250 of 2006) through the Department of Insurance and Financial Services. · michigan.gov
- Michigan House Bill 4087, a strategic Bitcoin reserve bill introduced in February 2025, advanced to a second reading in September 2025 and remains pending. · coindesk.com
Cite this data
Bitcoin-backed loan availability in Michigan: 7 of 7 tracked lenders serve the state, from 7.25% APR. borrow/on/bitcoin, verified August 1, 2026. https://borrowonbitcoin.com/bitcoin-loans/michigan
Free to cite with attribution and a link. Media inquiries welcome.
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