ASIC miner manufacturer Bitmain has entered into a strategic partnership with Antalpha to financially support customers during the crypto winter. It is reported by Bloomberg.
The Singapore-based firm will offer “low-interest loans” to Bitmain’s customers to reduce hardware-secured borrowing costs by around $4 billion.
Antalpha uses data from the manufacturer and its connected Antpool pool to assess risks.
According to Luxor, Bitmain has been one of the biggest beneficiaries of the mining boom in North America since China banned the industry in 2021. The company’s annual revenue was about $5.6 billion. Usually, it was a sale on credit secured on purchased equipment, and its price collapsed with bitcoin.
Ethan Vera, CEO of Luxor, praised the partnership, “The launch of Antalpha’s financial products is a strategic move by Bitmain.”
Antalpha will also open a revolving line of credit for miners to borrow their electricity bills. Vera noted that the share of one of the main cost items in bitcoin production increased to 40% in costs. According to him, the company’s recommended annual rate of 6.6% is about half of the available loans in the market.
Max Liao, managing director of business development at Antalpha, explained that mined bitcoins can act as collateral.
“We take the biggest cash outflows, the cost of electricity, and help reduce the load. This bear market will end one day and we need to get everyone through the winter,” said Liao.
Antalpha says some equipment credits won’t be covered margin call. This will allow miners to stop Bitmain payments and continue to benefit from the pledged platforms.
“Good move by Bitmain, because even if they raise funds and there is a possibility of default, the equipment is being sold. This is a way to support your needs by channeling more capital into your own system,” Vera emphasized.
Recall that in June, most public mining companies started selling their bitcoin reserves and liquidated 14,600 BTC.
In July, the trend continued, with miners mining 5767.9 BTC for a total of 3478 BTC.
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Source: Fork Log
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