{"id":546284,"date":"2023-02-01T09:01:33","date_gmt":"2023-02-01T06:01:33","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-friendly-bank-ends-loans-backed-by-crypto-mining-rigs\/"},"modified":"2023-02-01T09:01:33","modified_gmt":"2023-02-01T06:01:33","slug":"crypto-friendly-bank-ends-loans-backed-by-crypto-mining-rigs","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-friendly-bank-ends-loans-backed-by-crypto-mining-rigs\/","title":{"rendered":"# Crypto-friendly bank ends loans backed by crypto mining rigs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2717733783c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2717733783c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-friendly-bank-ends-loans-backed-by-crypto-mining-rigs\/#%E2%80%9D_Crypto-friendly_bank_ends_loans_backed_by_crypto_mining_rigs_%E2%80%9C\" >&#8221; Crypto-friendly bank ends loans backed by crypto mining rigs &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Crypto-friendly_bank_ends_loans_backed_by_crypto_mining_rigs_%E2%80%9C\"><\/span>&#8221; Crypto-friendly bank ends loans backed by crypto mining rigs &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5a4050f8>The holding company for the crypto-friendly bank, BankProv, has revealed it\u2019s no longer providing loans secured by cryptocurrency mining rigs after writing off $47.9 million in loans primarily secured by them throughout 2022.<\/p>\n<p>According to a Jan. 31 filing with the United States Securities and Exchange Commission (SEC), BankProv has already nearly <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1778784\/000177878423000007\/pvbc-20230127xex99_1.htm\">halved<\/a> the proportion of its digital asset portfolio consisting of rig-collateralized debt since the quarter ending Sep. 30, 2022.<\/p>\n<p>The bank held $41.2 million in digital asset-related loans as of Dec. 30 last year consisting of $26.7 million worth of loans collateralized by crypto mining rigs which \u201cwill continue to decline as the Bank is no longer originating this type of loan\u201d. <\/p>\n<p>The crypto mining industry has taken on huge amounts of debt during the 2021 bull market, often offering up mining rigs they own as collateral in order to lower their interest rates.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/0be380d5-24f0-406a-9a60-6a89e1be4f25.png\"><figcaption style=\"text-align: center;\"><em>Liabilities of the top ten publicly listed crypto mining firms according to recent financial statements. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/hashrateindex.com\/blog\/which-public-bitcoin-miners-owe-the-most-money\/\"><em>Luxor Technologies<\/em><\/a><\/figcaption><\/figure>\n<p>The subsequent bear market starting in 2022 resulted in tough conditions for miners, however, and many were forced to sell the Bitcoin (BTC) mining rigs they own in order to cover operating costs, causing mining hardware prices to plummet.<\/p>\n<p><strong>Related: <\/strong><strong><em>Bitcoin miner Greenidge cuts NYDIG debt from $72M to $17M<\/em><\/strong><\/p>\n<p>Despite the falling prices, some banks who had issued mining rig-collateralized debt were forced to repossess some of the miners used as collateral.<\/p>\n<p>According to a previous SEC filing, BankProv <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/s29.q4cdn.com\/115418717\/files\/23be8ff7-2c65-4c13-8ac5-9b1665855195.pdf\">repossessed<\/a> mining rigs in exchange for the forgiveness of $27.4 million in loans on Sep. 30, 2022, which resulted in an $11.3 million write-off for the firm.<\/p>\n<p>The losses likely contributed heavily to its decision to stop issuing these types of loans, with Carol Houle, the CFO of its holding company Provident Bancorp, noting: <\/p>\n<blockquote><p>\u201cAs we reflect on 2022, we are eager to take its lessons and emerge a better, stronger bank. Despite our 2022 losses, we enter 2023 well capitalized and well diversified.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/crypto-friendly-bank-stops-loans-backed-by-crypto-mining-rigs\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Crypto-friendly bank ends loans backed by crypto mining rigs &#8220; The holding company for the crypto-friendly bank, BankProv, has revealed it\u2019s no longer providing loans secured by cryptocurrency mining rigs after writing off $47.9 million in loans primarily secured by them throughout 2022. According to a Jan. 31 filing with the United States Securities&#8230;<\/p>\n","protected":false},"author":1,"featured_media":546285,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/7f79cf65-dca0-483c-bf98-370b76f93fea.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74989,75042,74898,71939,117,70552,73808,70934],"class_list":["post-546284","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin-mining","tag-mining","tag-sec","tag-banks","tag-business","tag-interest-rates","tag-loans","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/546284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=546284"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/546284\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/546285"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=546284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=546284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=546284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}