BlockFi to Sell $160 Million Mining Loans
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An editor at Coincrop
24 Jan 2023 | 2 min read
s it moves through the bankruptcy process, BlockFi is aiming to raise $160 million by offering bitcoin mining machine-backed loans according to Bloomberg.
Last year witnessed the commencement of bidding, and those close to the matter stated that some loans may have insufficient collateral due to declining machine prices.
As bitcoin values plummeted and electricity expenses skyrocketed, the cost of mining rigs dropped by more than 80% within one year's time. Mining profits were consequently crushed as a result.
In October, BlockFi's Chief Risk Officer Yuri Mushkin told The Block that while the firm was a major lender in the mining sector, it only accounted for a fraction of their overall business. Furthermore, they have not offered any new loans to miners since spring 2022.
Last December, Core Scientific - the largest mining firm - filed for Chapter 11 bankruptcy and miners have since been struggling. Concurrently, Argo Blockchain had to part with its iconic facility in Texas as it was sold off to Galaxy Digital for $65 million.
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