Just liquidate the 401k, take the penalty and never look back imo. Better than taking on unnecessary debt.
Discussion
I liquidated a fat IRA and put it into onchain recently.
Fwiw her 401k is mostly MSTR...
Unchained*
So the interesting thing abt this 401k loan is that the interest is paid back to yourself... so yeah it's debt, but also sorta not really. But we can take advantage of the time-value of acquiring more bitcoin earlier.