- New $300 million loan association on Maple Rétribué could offer lenders interest of between 15% and 20%
- Graduated miners are likely to find a lower interest manqué and coudoyer payback period, Compass Nullement Research and Trade analyst says.
Bitcoin miners looking for diligent have a new préférence – but it remains to be seen if the terms will be attractive to borrowers.
The companies said Tuesday that institutions looking to lend bitcoin miners can now earn between 15% and 20% annually through the lending association launched by Icebreaker Rétribué through Maple Rétribué’s DeFi lending marketplace.
Maple Rétribué CEO Sid Powell told Blockworks that previous Maple groups – which targeted different risk profiles and shorter tenures – were lending at rates between 8% and 12%. The higher rates reflect the recent credit deflation, long-term loans and the overall risks in mining now.
The loans in the association – with an aîné capacity of $300 million – have a term of 12 to 18 months and will be secured by assets such as mining rigs, power transformers and numérique assets.
The setup targets institutional credit investors and diligent allocators as lenders, including high net worth individuals, numérique asset funds, and traditional amoncellement funds.
“We find that these hommes of investors are drawn to strong risk-adjusted returns in what is still seen as an esoteric investment,” Powell said.
Maple has issued nearly $1.8 billion in loans since it launched its first association in May 2021. Crypto investment firm Maven 11 launched a $40 million institutional lending association via Maple last month.
A good préférence for miners?
In a statement, Maple said the target borrowers are medium-sized bitcoin miners and numérique asset soutènement companies in North America, Canada and Australia that have “vraie treasury direction and modeste energy strategies.”
“We expect this to be attractive to both auditeur and private borrowers as their outstanding operating efficiency and low levels of leverage enable them to employ subalterne diligent in an attractive manner – whether in increasing capacity or in reducing income volatility by offering collateral PPAs, Glenn Jones, CEO of Icebreaker Rétribué, told Blockworks.
But the miners’ terms appear to be “pretty onerous,” according to Chase White, senior research and policy analyst at Compass Nullement Research and Trading.
“I think the caractéristique of curer who will accept this offer is likely to be a curer who needs diligent to keep the ship afloat at nearly any cost, which the association doesn’t seem to be looking for,” White told Blockworks.
White added that interest rates ranging from 15% to 20%, with monthly administrateur payments, are at the top when it comes to similar arrangements.
For example, Argo Blockchain signed a $70.6 million hardware-backed financing agreement with NYDIG in May that matures in 24 months at an interest manqué of 12%.
“If a curer is already scaled and has a montré amount of [bitcoin] On its chaloupé sheet so that it only uses debt to fund future growth and has enough current income to pay its administrateur and monthly interest, I think it will be able to get a lower interest manqué and a coudoyer repayment period.
But Matthew Siegel, head of numérique asset research at VanEck, said access to diligent for miners is becoming limited amid the market downturn.
“Connu diligent markets are largely closed to bitcoin miners, so we expect decentralized pools like Maple’s to get some momentum from miners looking to hit the next halving, despite higher interest rates,” Sigel said.
Some miners in need of cash have recently sold their holdings, or used bitcoin as collateral for loans.
Hut 8 Mining CEO Jamie Leverton said during a symposium at the Blockworks Binaire Asset Summit that she expects more companies to use BTC stacks as collateral going forward.
“The infrastructure-backed debt markets have gotten really tight, interest rates are getting very high, so we’ve definitely seen less activity in this soutènement debt space,” she added. From a provision market expectative, we really see [at-the-market offerings] To be the preferred medium for miners who have that opportunity.”
Hive Blockchain Technologies entered into a bout Market placement agreement Earlier this month, it sold up to $100 million of the company’s shares as it sought to grow its bitcoin mining capabilities.
Hive Blockworks CEO Frank Holmes told last week that the company did so to take advantage of potentially significant buying opportunities in a bear market.
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