Crypto lender BlockFi — having filed for chapter weeks after the collapse of FTX — is planning to promote round $160 million of Bitcoin (BTC) miner-backed loans, Bloomberg reported.
The loans are collateralized by roughly 68,000 BTC mining machines, as per the report — which cited nameless sources.
Some loans have already defaulted and a few have additionally change into under-collateralized following the steep fall in BTC mining rigs final 12 months, based on the report.
BTC miners down 85%
The value of BTC miners fell by round 85% over the previous 12 months, based on Hashrate Index Information. Moreover, the autumn in BTC worth in 2022 — alongside the rising price of energy — squeezed miner margins, impacting demand for the BTC mining rigs.
BlockFi was a serious lender within the embattled mining sector, which has seen a number of gamers battle with liquidity over the previous 12 months. One of many largest gamers, Core Scientific, filed for Chapter 11 chapter in December 2022.
In the meantime, Argo Blockchain bought its Texas mining facility to Galaxy Digital for $65 million — securing a $35 million mortgage from the agency in late December 2022.