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BitNile to Lend Up to $100M to Small Businesses Backed by Bitcoin
Loans will range from $1 million to $25 million and be offered to publicly traded companies with less than $250 million in market capitalization.
By Aoyon Ashraf
Updated May 11, 2023, 4:02 p.m. Published Apr 22, 2022, 4:14 p.m.
Bitcoin miner BitNile (NILE) plans to fund up to $100 million in commercial loans to small, publicly traded companies, secured by its own bitcoin through its subsidiary, Digital Power Lending (DP Lending).
- The new lending program will be offered via a platform called Ault Lending that is designed to lend to publicly traded companies that are under $250 million in market capitalization, according to a statement.
- BitNile plans to hold up to $100 million of self-mined bitcoin in reserve to back the expansion of the lending program. The loans will range from $1 million to $25 million.
- The lending program will allow the borrower to repay the debts with cash, bitcoin or in the case of convertible promissory notes, common stock of the borrower.
- The lending program is designed to use a technology called "layer three" in partnership with decentralized finance (DeFi) startup Earnity to offer smart contracts to the borrowers and is also expected to allow those companies to borrow against their bitcoin holdings.
- BitNile plans to significantly expand its bitcoin mining production capacity this year, increasing the number of its mining rigs to 20,600. That would yield expected mining production capacity of about 2.24 exahashes per second (EH/s).
Read more: DeFi Startup Earnity Raises $15M Led by Miner BitNile
STORY CONTINUES BELOW
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Aoyon Ashraf
Aoyon Ashraf is CoinDesk's Head of Americas. He spent almost a decade at Bloomberg covering equities, commodities and tech. Prior to that, he spent several years on the sellside, financing small-cap companies. Aoyon graduated from University of Toronto with a degree in mining engineering. He holds ETH and BTC, as well as ADA, SOL, ATOM and some other altcoins that are below CoinDesk's disclosure threshold of $1,000.
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