American miner is ready to compete with …

American miner is ready to compete with junk bonds for a loan of $ 50 million

New York-based Coinmint LLC, intending to transform a former aluminum smelter into a large cryptocurrency mining venture, has decided to turn to the debt market to realize its vision..

According to Bloomberg, Coinmint intends to “borrow up to $ 50 million over the next 5 years to purchase and install servers on an area of ​​770 hectares.” Earlier this year, the company has already announced its intention to invest about $ 700 million in a new venture..

Bloomberg notes that the amount may be significant for the young cryptocurrency industry, but it is not such “by the standards of the credit market.” Coinmint intends to dispel possible doubts of potential lenders with high interest rates, source said.

“Coinmint is offering interest rates of 12% per annum, which is higher than the average yield on the lowest quality American junk bonds,” he said..

Coinmint co-founder Prior Leary also drew attention to the risk-reward balance of his company’s offering. “If we are talking about lenders who are entering a new space that they have not yet become accustomed to, they will see us as a higher risk proposal and use this factor as an excuse for a higher rate,” he said..

American miner is ready to compete with ...

Leary expects debt markets to become an important source of funding for the crypto business in the future. His company has used private lending in the past, he added..

Due to relatively low temperatures and electricity costs, Canada and upstate New York are popular locations for miners in this part of the world. In March, New York State authorities were even forced to amend their own legislation to cope with the influx of miners, whose electricity needs resent them compared to the consumption of other enterprises in the region..

American miner is ready to compete with ...

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