List of Platforms Giving Loans for Crypto Mining

Crypto Mining is a booming sector. As the crypto market expands, demand for mining cryptos also increases.

Whether you want to mine popular crypto like Bitcoin, which is becoming harder and harder daily, or you want to mine other altcoins, you’ll need many types of equipment.

To mine many altcoins, you can do this with a powerful GPU setup. But to expand your mining operations to get more profits, you’ll need an expensive hardware setup like ASIC.

If you don’t save enough money to expand your mining empire, it is hard to get any loan for crypto mining.

There are no banks that treat crypto mining as a business and give you a loan instantly. Either you have to borrow from your bank once, or you can use some of the platforms I listed below to give you a loan in exchange for crypto collateral.

#1. SALT Lending

SALT Lending is a service that lets you borrow using Crypto collateral.

You can borrow in USD or stable coins like USDT using Bitcoin, Ethereum, Bitcoin Cash, Dash, Dogecoin, Ripple, USDC, TUSD, PAX, PAX Gold, and their native SALT Token.

SALT provides loans from $5000 to $25,000,000 with 3 to 12 monthly payment options and an LTV (Loan-to-Value ratio) of 30 to 70%.

They also provide loans for buying mining equipment like ASIC or hiring additional staff to maintain racks of rigs.

For mining loans, SALT imposes flexible terms, and the payout can be made through fiat currency.

Your funds are stored offline on level 3 validated hardware with multisignature support.

#2. Compass Mining

Compass Mining is the marketplace for individual miners to buy ASIC miners and host in one of the facilities they partnered with.

In 2021, they introduced the Compass Mining Payment Plan, which provides you with the option of installment payment for ASIC.

Currently, they only offer ASIC mining hardware installment payments of 3, 6, 9, or 12-month options with the down payment.

You don’t have to worry about calculating your installments and down payments. Compass Mining provides a calculator to automatically calculate installments and down payments based on the cost of ASIC equipment.

This Compass Payment Plan is only available for ASICs hosted at one of Compass Mining’s over 20 facilities, not for those mining at home through Compass Mining’s AT-Home Mining program.

#3. Lend at Hodl Hodl

Hodl Hodl is a well-known P2P crypto exchange offering crypto lending and borrowing on their Lend at Hodl Hodl platform.

They do not offer borrowings for crypto mining. But you can borrow large sums at low interest rates for expanding or starting crypto mining.

Lend at Hodl Hodl is a P2P platform, meaning the platform only acts as a mediator between the borrower and the lender to successfully manage a barrow contract.

In Lend at Hodl Hodl, you have to put in the required loan amount and LTV by selecting the cryptocurrency. Then, the platform shows you borrow offers created by the users. If an offer suits your requirements, you can contact the person giving you the amount to make a negotiation.

Once the contract between you and the lender takes place, the platform stores your collateral asset in a multi-signature escrow to release your asset when the loan amount is fully paid with interest.

At the time of writing this post, you can find barrows offering up to 30000 USDT with up to 70% LTV and a 1% interest rate for at least 12 months.

#4. Ledn

Ledn is a Canada-based Bitcoin lending and borrowing platform.

They don’t offer any loans for Miners, but you can borrow 2X worth of your Bitcoins with Ledn to expand or start mining.

On their Ledn platform, you can borrow Dollars from Bitcoin collateral. These normal barrows are up to 12 months and have 50% LTV with a 9.5% annual interest rate.

But to borrow 2X worth, you can use Ledn’s B2X service. It works like their loan product but buys an equivalent amount of crypto to the amount that you deposit.

This doubles your exposure to Bitcoin for up to 12 months. As with Ledn’s basic loan product, B2X loans can be repaid at any time during the 12-month term.

These are the platforms you can leverage to take loans for mining purposes.

The list of platforms above gives you a loan of up to $20,000 to $30,000, which is required to start or expand mining, especially mining popular high-value crypto assets like Bitcoin.

What if you need millions of dollars?

Then, the solution is…

Business Loans for Mining LLC

If you are classified as a trade or business and structured as an LLC, you may qualify for business loans.

Business loans have a higher credit limit with lower interest rates than personal loans. The rates on these loans will depend on the loan type, type of lender, loan term length, and personal qualifications of the borrower.

Apart from the traditional banks, you can reach out to some big names in the mining industry, like Foundry, to finance your mining empire, or you can use some platforms listed below to take more than 100K loans by pledging your crypto holdings.

Final Thought

Getting a loan for expanding or starting crypto mining is the best option available because you don’t need to sell crypto assets that you have already earned, which will be more valuable in the future.

So, taking a loan using crypto assets as collateral puts you in a profit position. Yes, you need to pay some interest for borrowing, but you’ll not lose crypto assets that have the potential to be valued more.

List of Platforms Giving Loans for Crypto Mining was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.