Bitcoin-Backed Loans in Minnesota
7 of the 7 Bitcoin-backed loan lenders we track serve Minnesota, with rates from 7.25% APR. Here is who lends in Minnesota, who doesn't, and what each offers.
Minnesota pairs one of the nation's highest income taxes, with Bitcoin gains taxed as ordinary income up to 9.85%, with a cautious retail-crypto posture that banned cash-to-crypto ATMs in 2025. A Bitcoin-backed loan sidesteps both the tax hit of selling and the banned kiosk channel, since it is collateralized lending offered online by multistate lenders rather than a crypto ATM transaction.
By Steven Han and Michael Song ·Availability verified September 15, 2026 · Verified daily · rates last changed August 22, 2026 · Minnesota tax and regulatory review July 22, 2026
Sell or borrow in Minnesota: the tax math
Selling Bitcoin in Minnesota can trigger up to 9.85% in state tax on the gain, taxed as ordinary income, on top of federal capital gains tax, while pledging that Bitcoin for a loan is not a sale and is not itself a taxable event.
Minnesota levies a personal income tax with four brackets topping out at 9.85%, one of the highest state rates in the country. The state taxes capital gains as ordinary income and offers no preferential long-term capital gains rate or exclusion, so a large long-term gain from selling Bitcoin can be taxed at up to 9.85% at the state level. That sits on top of federal long-term capital gains tax, pushing a top-bracket Minnesota seller toward a combined rate near 30%.
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.
Minnesota 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 Minnesota
| Lender | APR | Max LTV | Custody | Eligibility note | Review |
|---|---|---|---|---|---|
 Arch | 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 | From $5,000 | 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 Minnesota
Borrowing $100,000 against 2.63 BTC ($200,000) is 50% LTV. BTC reference ≈ $76,000.
6 lenders serve Minnesota at this size and LTV, lowest effective APR first. Effective APR includes origination fees.
SALTLowest APRFigureArchAPX LendingStrikeLednWhy lender coverage looks the way it does in Minnesota
Minnesota has no crypto-specific lending regime and no BitLicense-style framework governing Bitcoin-backed loans. The Department of Commerce treats virtual-currency exchange, transfer, and storage as licensable money transmission under the Money Transmission Modernization Act in Chapter 53B, and lenders otherwise rely on standard multistate money-transmitter and consumer-lending licensing. Availability of Bitcoin-backed loans is therefore broadly nationwide in Minnesota, subject to each lender's own multistate licensing footprint.
Bitcoin and crypto in Minnesota
Minnesota has leaned toward consumer protection on retail crypto.
Minnesota bitcoin law & policy tracker (2026)
Last reviewed · Reviewed quarterly
Minnesota did something no other state has done: it banned cash-to-crypto kiosks outright rather than regulating them. It also taxes a bitcoin sale at 9.85 percent, among the highest state rates in the country.
The highest state tax on a sale in the country
Minnesota taxes capital gains as ordinary income at a top rate of 9.85 percent. That is among the highest in the country, though not the highest: California reaches 13.3 percent, New York 10.9, and Oregon and Washington 9.9.
The useful comparison is with Missouri, which sits at the opposite end. A Missouri resident now pays nothing to the state on a bitcoin sale; a Minnesota resident at the top rate pays nearly ten cents on the dollar of gain before federal tax is counted at all. The state half of the argument for borrowing rather than selling is close to its maximum value here and worth nothing there, so it is worth running the numbers rather than assuming.
The docket
- Signed May 5 2025, effective August 1 20252025 kiosk ban
Statewide ban on cash-to-crypto kiosks
Governor Tim Walz signed it on May 5, 2025. The operating ban took effect on August 1, 2025, and operators had to remove the machines from public access by December 31, 2025.
Minnesota had already regulated kiosk operators in a 2024 law. When that proved insufficient against fraud it did not tighten the rules further, it removed the machines. No other state in this series has gone that far: Wisconsin capped transactions, Kansas capped the first one, Iowa licensed operators, North Dakota set a daily limit. Minnesota ended the category.
No link: the ban was enacted as part of a broader session law rather than as a standalone bill page that can be cited cleanly.
- Introduced March 2025, not enactedSF 2661 (2025)
Minnesota Bitcoin Act
Authored by Senators Miller and Bahr and introduced on March 17, 2025. It would have let the state invest in bitcoin and, more interestingly for a reader of this page, exempted certain crypto gains from state tax.
Given the 9.85 percent rate above, the tax half of that bill would have mattered far more to a Minnesota bitcoin holder than the investment half. It did not become law, so the 9.85 percent stands.
Lending
The kiosk ban does not touch collateralized lending. Minnesota has no crypto-specific consumer lending regime, so availability turns on each lender's own multistate licensing. All seven lenders we track serve Minnesota.
Legislative status is current as of August 27, 2026 and re-checked quarterly. Bills move, take effect, and die between reviews, so confirm anything you plan to act on against the primary sources linked above and at the foot of this page. This is information, not legal or tax advice.
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 Minnesota tax profits from selling Bitcoin?
Yes. Minnesota taxes capital gains as ordinary income across four brackets from 5.35% up to 9.85%, with no preferential long-term capital gains rate, and that state tax applies on top of federal capital gains tax. Borrowing against Bitcoin instead of selling it does not create a taxable event.
Did Minnesota's crypto ATM ban affect Bitcoin-backed loans?
No. The law Governor Walz signed on May 5, 2025 bans cash-to-crypto kiosks, which convert physical cash into cryptocurrency. That operating ban took effect August 1, 2025, with machines required to be removed from public access by December 31, 2025. It does not target Bitcoin-backed lending, which is collateralized borrowing arranged online rather than a kiosk transaction.
Can I get a Bitcoin-backed loan in Minnesota?
Minnesota has no crypto-specific lending law, so whether a given lender serves the state depends on that company's own multistate money-transmitter and lending licenses. Many national Bitcoin-backed loan providers operate in Minnesota, and our comparison shows which lenders list availability there.
Can I get a Bitcoin-backed loan in Minnesota?
Yes. 7 of the Bitcoin-backed lenders we track serve Minnesota, with starting rates from 7.25% APR. They include Arch, SALT, Strike, Ledn, and others.
Which lenders offer Bitcoin-backed loans in Minnesota?
Arch, SALT, Strike, Ledn, Figure, APX Lending, Unchained all serve Minnesota according to their stated coverage, which we verify daily.
Are any Bitcoin loan lenders not available in Minnesota?
No. Every Bitcoin-backed loan lender we track serves Minnesota.
Bitcoin loans in nearby states
New to this? How Bitcoin-backed loans work covers LTV, margin calls, and custody before you compare rates in Minnesota.
Sources
- Minnesota's top marginal income tax rate is 9.85% and the state has four income tax brackets (5.35%, 6.8%, 7.85%, 9.85%) for 2026. · revenue.state.mn.us
- Minnesota taxes net capital gains as ordinary income with no preferential long-term capital gains rate. · house.mn.gov
- Minnesota enacted a first-of-its-kind 2024 law regulating cryptocurrency ATM operators, effective August 1, 2024, requiring registration, fee disclosure, deposit caps, and fraud refunds. · mn.gov
- Governor Walz signed a law on May 5, 2025 banning cash-to-crypto ATMs statewide, with the operating ban effective August 1, 2025 and machines removed from public access by December 31, 2025, after nearly $1 million in reported fraud losses. · startribune.com
- Minnesota SF 2661 (2025), Minnesota Bitcoin Act · revisor.mn.gov
- Minnesota Department of Commerce · mn.gov
- Minnesota Department of Revenue, individual income tax · revenue.state.mn.us
Cite this data
Bitcoin-backed loan availability in Minnesota: 7 of 7 tracked lenders serve the state, from 7.25% APR. borrow/on/bitcoin, verified September 15, 2026. https://borrowonbitcoin.com/bitcoin-loans/minnesota
Free to cite with attribution and a link. Media inquiries welcome.
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