Himanshu Sahay, co-founder and CTO of Arch Lending, argues Bitcoin holders should borrow against their holdings rather than spend the cryptocurrency. Sahay co-founded Arch Lending in early 2022 with CEO Dhruv Patel, and the firm makes overcollateralized crypto-backed loans against Bitcoin, Ethereum, and Solana, raised $5 million in 2024, and keeps client collateral in qualified custody without rehypothecation. Sahay's position mirrors private banking strategies where wealthy clients borrow against appreciating assets like gold and real estate instead of selling them, preserving the asset's long-term growth potential while accessing liquidity.
Sahay Positions Bitcoin as Reserve Asset Not Currency
Sahay rejects the consumer-payments framing for Bitcoin despite the maturation of the Lightning Network and growth of agentic commerce. "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," Sahay said. VanEck projects a single Bitcoin could be worth $21 million by 2049 if it holds a 25% compounded annual growth rate. In March 2025, President Trump signed an executive order establishing a U.S. Strategic Bitcoin Reserve.
Arch Lending Applies Private Banking Model to Bitcoin
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," Sahay said. Instead of selling Bitcoin and triggering a taxable event, holders pledge it as collateral and borrow dollars or stablecoins against it. The Bitcoin must be moved out of self-custody to borrow, but the asset continues appreciating while the holder spends the loan proceeds.
Bitcoin Pizza Day Illustrates Opportunity Cost of Spending
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 current prices, they would be worth more than $700 million. At the time of writing, a single Bitcoin traded around $71,380. Sahay warns about this opportunity cost: spending an asset that, by his calculation, 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," Sahay said.
FAQ
What did Himanshu Sahay say about Bitcoin?
Himanshu Sahay, co-founder and CTO of Arch Lending, said Bitcoin should be held as a reserve asset rather than spent as a currency. He argues holders should borrow against their Bitcoin holdings instead of selling them, mirroring private banking strategies used with gold and real estate.
What is Arch Lending?
Arch Lending is a firm co-founded in early 2022 by Himanshu Sahay and CEO Dhruv Patel. The company makes overcollateralized crypto-backed loans against Bitcoin, Ethereum, and Solana, raised $5 million in 2024, and keeps client collateral in qualified custody without rehypothecation.
What happened on Bitcoin Pizza Day?
On May 22, 2010, Laszlo Hanyecz used 10,000 Bitcoin to buy two Papa John's pizzas. At the time, those coins were worth roughly $41. At current prices, they would be worth more than $700 million, with a single Bitcoin trading around $71,380 at the time of writing.
