Bitmain, a major mining equipment manufacturer, introduced an unusual partner during the recent World Miners Summit in Miami yesterday. Antalpha will be a direct lender whose latest financial products can keep those miners struggling with the prolonged crypto winter.
Due to the prolonged fall in Bitcoin price, some miners are not only enduring losses but are also deprived of investments due to the crypto winter. We reported earlier that the most advanced companies, staked on a fast cycle of upgrading their equipment, are now feeling relatively well. Smaller companies are experiencing chronic problems due to underfunding.
Such troubled farms have been forced to sell off stocks of previously mined coins to not only pay for operating expenses but also to meet margin requirements on past loans. What makes matters worse is that the money was lent against BTC or equipment, which has now fallen in value simultaneously.
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Such troubled farms have been caught in a price trap and are forced to aggressively sell off their equipment and bitcoins at discount prices which threatens an already not-so-healthy business.
Previously unknown startup Antalpha has raised $700 million in funding and has already announced it has agreements to bring in new investors as demand rises. As mentioned above, rumors persist that Antalpha is a subsidiary project of mining giant Bitmain.
We previously reported that Bitmain is also busy rescuing the Ethereum mining market, where it is attracting investment from subsidiary projects.
Antalpha offers three well-designed help options that fit different types of problems. But the first tool, provided for the first time, attracts particular attention:
According to the audience’s enthusiastic reaction during Antalpha’s presentation, miners are indeed interested in these innovations. Hopefully, this new type of credit will help interested miners.
For ordinary traders and everyone else, it might signify the end of the panic sales of cryptocurrencies, which means hope for a gradual stabilization of the BTC price and some certainty in the market. Miners have traditionally acted as large holders of bitcoins, used to accumulate the coin, but then forced to sell off aggressively due to the prolonged crypto winter.
Nevertheless, such active actions by Bitmain clearly expose the seriousness of the situation in the mining industry, forcing a decisive intervention in the market mechanics.
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