At the Bitmain’s World Digital Mining Summit (WDMS) this Tuesday, Antalpha launched several novel lending products for crypto miners.
Antalpha is a Singapore-based financial services company and a strategic partner of Bitmain.
The products unveiled at the summit include co-lending with other financiers; financing to offload electricity costs, one of miners’ biggest operating expenses.
Other products include deals collateralized with hashrate instead of tokens or equipment as is common in the industry, as well as financing collateralized by both hashrate and mined tokens.
Moreover, the company is also offering lending with no margin calls, a type of structured lending.
This product might turn out very useful for crypto miners, who have been facing margin calls on their loans due to the steep price drop of Bitcoin and lack of capital amidst the crashing market.
Antalpha’s Managing Director of Business Development Max Liao also said that a co-lending deal is currently under discussion.
Antalpha will issue mining loans with interest rates of around 6.6% to 8% per year, and loan-to-value ratios from 60% to 90%.
Liao clarified that the company doesn’t leverage its internal assets and has about $700 million of client’s assets on its balance sheet.
By virtue of the company’s partnership with Bitmain, the world’s largest manufacturer of Bitcoin mining rigs, and its mining pool affiliate, AntPool, Antalpha will be able to collateralize the hashrate for the hashrate loans, with no margin calls or liquidations.
Liao said that the company has been focusing on financial services and asset management, as well as equipment financing with the goal of becoming a ‘proper financial institution’.
Liao said that Antalpha is not looking to replace any of the big players out there, but merely step in if other lenders “are not fulfilling their function.”
Antalpha’s core business is Bitcoin financing. However, Liao said that mining financing “is very important for the overall ecosystem right now because there is a credit crunch happening” and borrowers might not be able to find much-required capital.
For more crypto related news, subscribe to The Crypto Times.