Borrowing in Bitcoin Versus Dollars

Coinbase Asset Management’s hashrate loans allow miners to borrow against their entire mining facility.

Subscribe to the Blockspace newsletter!

Welcome back to The Mining Pod! Today, Doug Wilson, Head of Credit Investments at Coinbase Asset Management (CBAM), joins us to talk about their new hashrate backed loans and how they differ from traditional loans for Bitcoin miners. Doug breaks down CBAM’s flexible collateral package, which allows miners to post their facilities and bitcoin as collateral. We also discuss the broader capital markets for crypto, the impact of institutionalization and ETFs, the importance of regulatory and tax clarity, and the untapped potential of the stablecoin economy to drive efficiency in payments and finance.

Subscribe to the newsletter! https://newsletter.blockspacemedia.com

**Notes:**

* LTV typically 50-70% for Bitcoin loans

* Up to 50% hash rate collateral

* Coinbase Asset Management registered Q1 2023

* Coinbase is a wholly owned subsidiary

* Bitcoin mining is a commodity industry with commodity margins

Timestamps:

00:00:00  Start

00:02:37  What does CBAM do?

00:03:26  Hashrate Loans

00:06:25  Hashrate definition

00:08:25  Bitcoin industry stigma

00:10:25  Data centers as collateral?

00:12:44  Current & future state of lending

00:14:44  Rates & specifics

00:18:49  Target clients

00:20:08  Retail loans

00:22:07  DeFi?

00:24:30  Competition from TradFi

00:25:56  Stablecoins

00:28:03  Future of stablecoins?

00:28:41  Regulations

00:31:16  Future of capital markets products?

00:32:49  Taxes

👉CleanSpark, America's Bitcoin Miner!

CleanSpark (Nasdaq: CLSK) is a market-leading data center developer with a proven track record of success. We own a portfolio of power, land, and data centers across the United States powered by globally competitive energy prices. Sitting at the intersection of Bitcoin, energy, operational excellence and capital stewardship, we optimize our infrastructure to deliver superior returns to our shareholders. Monetizing low-cost, high reliability energy by producing a global emerging critical resource – compute – positions us to prosper in an ever-changing world.

👉 FBOX, Cooling for Bitcoin Mining and the AI Data Center Transformation

FBOX is the global leader in cooling system manufacturing, with the #1 shipment volume of bitcoin mining containers worldwide. Not only powering for the strongest hashrate, their technology also helps mining infrastructure transform into AI data centers. Backed by the largest production scale on earth, global deployment capability, and a full range of cooling solutions, they are shaping the future of compute.

👉 Luxor, Leaders In Bitcoin Mining and Compute Power!

Get game-changing mining results with Luxor Firmware. Boost hashrate, cut energy costs, protect your hardware, and maximize mining profits with LuxOS.

Published twice weekly, "The Mining Pod" interviews the best builders and operators in the Bitcoin and Bitcoin mining landscape. Subscribe to get notifications when we publish interviews on Tuesday and a news show on Friday!