![Babel Finance offers Machine-Backed loans to Bitcoin Miners](http://bitcoinworld.co.in/wp-content/uploads/2021/01/Babel-Finance-offers-Machine-Backed-loans-to-Bitcoin-Miners.jpg)
Babel Finance, a Hong Kong-based firm, makes life simpler for bitcoin miners and other crypto market participants. The Hong Kong-based firm is currently receiving mining machines from bitcoin miners as collateral for USD loans. According to reports, Babel Finance claims to focus on developing a sustainable economic infrastructure for the crypto space. It has rolled out a new service to make it easier for bitcoin miners to access crypto-based financial products.
As per sources close to the matter, Bitcoin (BTC) miners are involved in getting USD loans from Babel Finance. They can now place their mining machines as collateral. Distinctly, the loans’ loan-to-value (LTV) ratio is just 30%, rather than the 160% the firm charges typically. This is because the entire crypto mined through the machine utilized as collateral will be under Babel’s custody till the miner returns the borrowed funds.
Machine-Backed loans help Bitcoin miners to cover expenses while offering less crypto
Bitcoin has been on a severe bull run since late 2020. The value of the world’s flagship crypto has proceeded to swell this year. Throughout bull markets, miners manage to hold their freshly mined coins to maximize profits when prices skyrocket. In a bull market, miners are frequently uncomfortable parting ways with mined cryptocurrency. These loans enable the miners to incorporate expenses such as paying electricity bills or buying new equipment while giving up less BTC or ETH.
Established in June 2020, Babel Finance elucidates that its primary objective is to assist Chinese miners. It supports them in contending with significant firms in the Western world who have the authority to buy advanced machines. To make the business a huge success, Babel has collaborated with some good firms in the crypto space. It includes Spark Pool, a leading ETH mining pool, F2Pool, one of the largest bitcoin mining pools, and various other crypto market participants. The firm insisted that it collected $22 million worth of machine loans after its launch last year. Thus, describing 5% of its $450 million outstanding loans. In the future, the lender aspires to let miners employ their machines to hedge against the danger of their cryptocurrency investments.
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