Crypto lenders are suffering as bitcoin miners are unable to pay back gigantic loans

Things do not seem to be getting higher for the cryptocurrency scene following the collapse of FTX (opens in new tab). According to a report from Bloomberg (opens in new tab), bitcoin mining firms are unable to pay back thousands and thousands of {dollars} in loans, leaving their lenders caught with hundreds of mining rigs.

Ethan Vera, COO of Luxor Technologies, informed Bloomberg that miners ended up “dictating quite a lot of the mortgage phrases” as crypto mining boomed, they usually supplied the mining rigs they purchased with the loans as collateral. So, in the event that they could not repay the loans, they merely gave up the machines. Machines, by the best way, whose worth dropped at the least 85% from simply final month, in accordance to the reporting. Ouch.

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About the Author: Daniel