1 year ago
Crypto lender BlockFi — having filed for bankruptcy weeks aft the illness of FTX — is readying to merchantability astir $160 cardinal of Bitcoin (BTC) miner-backed loans, Bloomberg reported.
The loans are collateralized by astir 68,000 BTC mining machines, arsenic per the study — which cited anonymous sources.
Some loans person already defaulted and immoderate person besides go under-collateralized pursuing the steep autumn successful BTC mining rigs past year, according to the report.
BTC miners down 85%
The terms of BTC miners fell by astir 85% implicit the past year, according to Hashrate Index Data. Furthermore, the autumn successful BTC terms successful 2022 — alongside the rising outgo of powerfulness — squeezed miner margins, impacting request for the BTC mining rigs.
BlockFi was a large lender successful the embattled mining sector, which has seen respective players conflict with liquidity implicit the past year. One of the biggest players, Core Scientific, filed for Chapter 11 bankruptcy successful December 2022.
Meanwhile, Argo Blockchain sold its Texas mining facility to Galaxy Digital for $65 cardinal — securing a $35 cardinal indebtedness from the steadfast successful precocious December 2022.
The station BlockFi plans to merchantability $160M worthy of BTC miner-backed loans appeared archetypal connected CryptoSlate.
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