Bitcoin loan-backed $188M Ledn bond faces stress after 27% price drop triggers liquidations

In early February 2026, a $188 million bond backed by bitcoin loans from Ledn came under pressure after a 27% slide from bitcoin's mid-January peak triggered forced liquidations on about a quarter of the underlying loans. The collateral package for the Jefferies-arranged deal shifted from $199 million in loans plus $1 million in cash to roughly $150 million in loans and $50 million in cash, while the transaction remains slated to close on February 18. The episode has raised concerns about the resilience of asset-backed securities tied to volatile crypto markets, even as the bonds aim to offer yields several percentage points above benchmark rates.