A crypto-friendly bank, BankProv, has recently announced that it will no longer offer loans backed by crypto mining rigs.
Previously, the bank offered such loans as a way for clients to fund their mining operations. But now it cited changing market conditions and increased regulatory inspection as reasons to halt these services.
Reasons for The Bank’s Decision
Crypto mining requires specialized equipment and a significant amount of electricity. These mining equipment are expensive, ranging from $2,000-$20,000, and usually serve as collateral for miners’ loans.
However, during the market downturn in 2022, many miners halted operations due to falling BTC prices and rising electricity costs.
As a result, many vendors slashed the price of mining rigs due to falling demand. Unfortunately, the low price for these rigs wreaked havoc on miners using them as collaterals.
Many miners discovered that the costs of their mining rigs…
