Peter Schiff Criticizes Bitcoin-Backed Mortgages as Coinbase and Better Launch New Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 29 2026
0mins
Source: stocktwits
Peter Schiff's Critique: Economist Peter Schiff criticized crypto-backed mortgages, arguing they increase costs and risks for borrowers by requiring them to take on two loans and finance 100% of a home's value.
New Product Launch: The new crypto-backed mortgage product, backed by Fannie Mae and offered through platforms like Coinbase and Better, allows borrowers to use Bitcoin or USDC as collateral, which supporters claim preserves crypto exposure and avoids capital gains taxes.
Market Sentiment: Retail sentiment around Coinbase stock has returned to a neutral zone, reflecting mixed reactions as the debate over crypto-backed mortgages intensifies, with some users expressing optimism about potential growth in the cryptocurrency market.
Concerns Over Complexity: Critics, including Schiff, argue that the added complexity and leverage of crypto-backed loans may outweigh their benefits, especially in volatile market conditions, raising concerns about the likelihood of default for borrowers managing multiple debts.
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Analyst Views on BETR
Wall Street analysts forecast BETR stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 29.250
Low
40.00
Averages
40.00
High
40.00
Current: 29.250
Low
40.00
Averages
40.00
High
40.00
About BETR
Better Home & Finance Holding Company is a technology-enabled homeownership company. The Company offers mortgage, home equity, and other homeownership products through a digital platform. Its services are designed to support customers across stages of the homeownership cycle, including purchase, ownership, refinance, and sale. Its platform supports both consumer-facing offerings and offerings provided to third-party strategic partners and is designed to scale across products, channels, and market conditions. Its segments include Home Finance and Banking. The Home Finance segment provides homeownership services such as purchase mortgages, refinance mortgages, and home equity lines of credit and closed-end second lien loans for home purchase and refinance, including cash-out refinance and debt consolidation, as well as mortgage related product offerings such as real estate services and insurance services, which includes title insurance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Profitability Outlook: Analysts expect BETR to achieve EBITDA break-even by Q4 2026 and become profitable in 2027, indicating a significant improvement in the company's financial performance over the next few years, which boosts investor confidence.
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- Revenue Performance: The company generated around $48 million in net revenues during the same quarter; however, management's comments regarding target adjustments may undermine investor confidence, leading to a sharp decline in stock price.
- Target Adjustment: The CEO indicated that the previously set target of $1 billion in monthly funded loans might be deferred, primarily due to the rate environment, which could impact the company's long-term strategic planning and market expectations.
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- First Bitcoin-Backed Mortgage: Coinbase and Better Mortgage have launched the first Fannie Mae-backed mortgage secured by Bitcoin and USDC, allowing homebuyers to use digital assets as collateral instead of cash down payments, which is expected to attract younger buyers.
- Market Demand Insight: Better claims that 41% of its pre-approved customers cannot make traditional down payments due to cash shortages, and leveraging digital assets as collateral could reduce this percentage, thereby addressing housing needs among the younger generation.
- Innovative Mortgage Structure: The new mortgage employs a dual-loan structure, with a traditional loan covering the entire home and a second token-based loan covering only the down payment, intentionally over-collateralized at 250% in Bitcoin or 125% in USDC to mitigate market volatility.
- Future Outlook: While this mortgage product may not gain rapid traction, it offers an intriguing glimpse into a future where Bitcoin and stablecoins can be pledged as collateral for home purchases, particularly appealing to younger investors.
See More
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- First Bitcoin Mortgage: A Michigan couple has secured the country's first Bitcoin-backed mortgage through Better and Coinbase, marking a new trend in utilizing digital assets for real estate financing that could attract younger homebuyers.
- Opportunity for Young Buyers: Better claims that 41% of its pre-approved customers cannot make traditional down payments due to cash shortages, and allowing them to use Bitcoin or USDC as collateral could reduce this percentage, thereby expanding the potential customer base.
- Innovative Mortgage Structure: The mortgage from Coinbase and Better employs a dual-loan structure, where a traditional loan covers the entire home while a second token-based loan covers the down payment, with the latter over-collateralized in Bitcoin (250%) or USDC (125%) to mitigate market volatility.
- Market Outlook: While this product may not gain traction beyond a niche of crypto investors, it offers an intriguing glimpse into the future of real estate transactions, showcasing the potential for Bitcoin and stablecoins to be used as collateral, particularly among younger investors.
See More
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- Profitability Outlook: Analysts expect BETR to achieve EBITDA break-even by Q4 2026 and become profitable in 2027, indicating a significant improvement in the company's financial performance over the next few years, which boosts investor confidence.
- Risk vs. Reward: BTIG notes that at the current valuation, the upside potential from scaling growth outweighs the risks associated with potential delays, providing investors with a favorable risk-reward ratio, despite differing opinions in the market.
- CSR Rating Downgrade: BTIG downgraded Centerspace (CSR) from Buy to Neutral and removed the $79 price target, with analysts stating that while they appreciate the CSR team, the outcome of the strategic review raises more questions than answers in the near term, potentially impacting investor confidence.
See More
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- UBS Upgrade: UBS upgrades Dynatrace from neutral to buy, citing strong core application performance monitoring demand which is expected to drive modest growth, reflecting a healthy demand backdrop in the market.
- Bank of America Upgrade: Bank of America upgrades Kilroy Realty from neutral to buy, raising the price target from $42 to $44, indicating confidence in improving demand dynamics that are likely to enhance the company's competitive position in the REIT sector.
- DA Davidson Initiation: DA Davidson initiates coverage on Lincoln Electric with a buy rating and a $320 price target, emphasizing its potential as an industrial compounder, which suggests future growth opportunities in the sector.
- Goldman Sachs Neutral Reiteration: Goldman Sachs reiterates Tesla as neutral, forecasting that its Q2 2026 delivery numbers will exceed consensus expectations, thereby boosting confidence in the company's future performance.
See More
Latest Wall Street Ratings Overview
- Morgan Stanley Bullish on Onto Innovation: Morgan Stanley initiates Onto Innovation with an overweight rating, citing potential upside to consensus estimates driven by its process control capabilities in both front-end and back-end operations, suggesting a favorable re-rating ahead.
- Needham Initiates Ceva as Buy: Needham launches coverage of Ceva with a Buy rating and a price target of $55, indicating a 70x P/E based on CY27 EPS estimates, as the company is positioned to benefit from AI advancements in the semiconductor sector.
- UBS Initiates Jade Biosciences as Buy: UBS rates Jade Biosciences as a Buy, highlighting its best-in-class potential, with expectations that the FDA's acceptance of shorter eGFR kidney function data will expedite enrollment in pivotal studies.
- Morgan Stanley Upgrades Ferrari: Morgan Stanley upgrades Ferrari to overweight from equal weight, raising the price target to $438, arguing that the current de-rating overstates brand risk and that the company’s wealth creation and product pipeline support a positive re-rating.
See More
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- Loan Volume Surge: Better Home & Finance reported approximately $1.64 billion in loan volume for Q1 2026, marking an 89% year-over-year increase, which highlights the company's strong growth potential in the AI-driven mortgage market, yet also reflects concerns over the high-rate environment.
- Revenue Performance: The company generated around $48 million in net revenues during the same quarter; however, management's comments regarding target adjustments may undermine investor confidence, leading to a sharp decline in stock price.
- Target Adjustment: The CEO indicated that the previously set target of $1 billion in monthly funded loans might be deferred, primarily due to the rate environment, which could impact the company's long-term strategic planning and market expectations.
- Investor Investigation: Johnson Fistel is investigating whether Better Home & Finance complied with federal securities laws, and if investors suffered losses during this period, it may affect the company's legal liabilities and future shareholder trust.
See More
Coinbase and Better Launch Bitcoin-Backed Mortgages
- First Bitcoin-Backed Mortgage: Coinbase and Better Mortgage have launched the first Fannie Mae-backed mortgage secured by Bitcoin and USDC, allowing homebuyers to use digital assets as collateral instead of cash down payments, which is expected to attract younger buyers.
- Market Demand Insight: Better claims that 41% of its pre-approved customers cannot make traditional down payments due to cash shortages, and leveraging digital assets as collateral could reduce this percentage, thereby addressing housing needs among the younger generation.
- Innovative Mortgage Structure: The new mortgage employs a dual-loan structure, with a traditional loan covering the entire home and a second token-based loan covering only the down payment, intentionally over-collateralized at 250% in Bitcoin or 125% in USDC to mitigate market volatility.
- Future Outlook: While this mortgage product may not gain rapid traction, it offers an intriguing glimpse into a future where Bitcoin and stablecoins can be pledged as collateral for home purchases, particularly appealing to younger investors.
See More
Michigan Couple Secures First Bitcoin-Backed Mortgage
- First Bitcoin Mortgage: A Michigan couple has secured the country's first Bitcoin-backed mortgage through Better and Coinbase, marking a new trend in utilizing digital assets for real estate financing that could attract younger homebuyers.
- Opportunity for Young Buyers: Better claims that 41% of its pre-approved customers cannot make traditional down payments due to cash shortages, and allowing them to use Bitcoin or USDC as collateral could reduce this percentage, thereby expanding the potential customer base.
- Innovative Mortgage Structure: The mortgage from Coinbase and Better employs a dual-loan structure, where a traditional loan covers the entire home while a second token-based loan covers the down payment, with the latter over-collateralized in Bitcoin (250%) or USDC (125%) to mitigate market volatility.
- Market Outlook: While this product may not gain traction beyond a niche of crypto investors, it offers an intriguing glimpse into the future of real estate transactions, showcasing the potential for Bitcoin and stablecoins to be used as collateral, particularly among younger investors.
See More
