A look at Bitcoin mining’s private loan marketplace

Bitcoin mining has always been a capital-intensive activity. The industry’s need for cash has never been higher following Bitcoin’s bull run in late 2020 and then China’s crackdown on the space last summer. These events led to the overall rise of Bitcoin mining financing in 2021, which, in return, contributed to an unprecedented network growth in terms of the global power footprint and equipment on-order. 

Yet still, mining companies are now facing mounting pressure for cash – especially the ones that have been holding all of their mined BTC – as they undergo multi-gigawatts of new power capacity construction while the monthly installment deadlines for the mining equipment they pre-ordered last year continue to approach.