Massachusetts-Based BankProv Will End Offering Loans Secured By Cryptocurrency Mining Rigs
Bankprov reveals that it holds approximately $41.2 million in collateralized loans, with approximately $26.7 million in loans backed by crypto mining equipment. Application-specific integrated circuits (ASICs) secured by mining rigs became a popular investment vehicle in 2021, but the industry has been hit in a significant way following the crypto winter, and by the end of June 2022, Luxor’s executive It was estimated by Ethan Vera that about $4 billion of loans backed by machines were under financial stress.
Since then, several crypto-mining companies have either filed for bankruptcy or restructured crores of debt. For example, at the end of September bitcoin mining farm Compute North filed for bankruptcy and two months later, Core Scientific has just filed for the same and other mining operations are trying to restructure loans. . Greenies Generation announced Tuesday that it has earned a B.A. Restructured $11 million in debt with Riley.
Bankprov stated that it had withdrawn application specific integrated circuit mining equipment from crypto mining operations as announced in September. At the time of the firing it was noted that our digital asset loan portfolio was down $79.3 million or 65.8% primarily due to pay downs on outstanding lines of credit, partial charge-offs, and $27.4 million to loan relationships. This is due to the re-cleaning and reclamation of cryptocurrency mining rigs instead. The institution’s EX-99.1 earnings filing adds that the portfolio of loans secured by cryptocurrency mining rigs will continue to decline as the bank is no longer originating these types of loans and on the one hand crypto-friendly banking financial institution, Metropolitan Commercial Bank announced in the second week of January 2023 that it plans to exit its crypto assets related business and further stated that it does not hold any exposure to crypto assets but focuses on cryptocurrencies. It has a business relationship with customers. The bank did not fix any date but said that crypto trading will be phased out this year.
