Fund a Crypto Mining Business with Crypto


Running a crypto mining operation is a complicated and capital-heavy venture. Beyond securing a suitable location, founders also have to worry about things like electricity bills, cost of hardware and maintenance, and even employee payroll. As more and more cryptocurrency mines are opening shop, the demand for operating capital has increased. For many miners, using the crypto the earn from their operation to fund their business is a great way to establish and grow their companies.

Fund Mining Rigs with Crypto

Antminer, a popular miner hardware manufacturer, sells their S7 ASIC Bitcoin Miner for around $199.99 each. A crypto mining rig can have anywhere between four to tens of thousands of these devices. The upstart cost of this hard can be in the millions of dollars. Additionally, the upkeep and maintenance costs associated with running these machines make the operational costs of a mine increasingly costly.

The cost of hardware and associated upkeep can be a big drain on a crypto mining business’ resources. Using the crypto miners earn through mining is an easy way to get access to USD or stablecoin funding without having to sell their mining rewards. Learn more about how BlockFi’s crypto-backed loans work here.

Pay Mining Electricity Bills with Crypto

Bitmain’s SanShangLiang industrial mining complex in Mongolia has over 25,000 machines that process $250k of Bitcoin every day as of May 2018. That massive crypto mine has a daily electrical cost of over $39,000. This facility has a higher power consumption than a small town.

This incredible power bill puts a big strain on the business’ viability. While the price of cryptocurrency changes from day to day, the price of power at these facilities does not. Medium and large-scale mining operations typically negotiate and lock-in the price of power with a provider on multi-year or even multi-decade contracts. While that price security is valuable, the fluctuation in the crypto market leaves business owners open to risk.

By putting the crypto you earn from mining towards a crypto-backed loan, you get the advantage of being able to keep the ownership of your crypto without having to sell. This funding option is particularly useful if you think your cryptocurrency will go up in value in the future. Learn more about how collateralized loans work here.

Pay for Business Expenses with Crypto

With the growth of the cryptocurrency industry, more and more business owners are using cryptocurrency to fund their companies. At BlockFi, we have business clients who use us to help them with anything from funding employee payroll to paying for a business expansion.

For business owners of all sizes, the success of their business relies on its employees and their ability to be effective in their job. The core of that experience is receiving their compensation on-time and in-full. And once your business begins to see success, it may be time to expand the business. This may come in the form of a diversification of products or services, growing marketing and outreach strategies, or even opening a new location for you business. These activities are expensive but worthwhile for the long-term growth of a company.

By leveraging their BTCETH, or LTC, clients have the benefit of receiving funds directly into their bank account without having to sell their crypto. Applying for a BlockFi loan takes less than 2 minutes and does not involve pulling your credit score. If you have any questions about BlockFi or how our loans work, please contact us at support@blockfi.com. We love hearing from you.

BlockFi lets you use your Bitcoin, Ether, and Litecoin to do things like buy a home, pay down debt, or even fund your business without having to sell your crypto. Start your application now and get funded in as few as 90 minutes.

How a Bitcoin loan works

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Client Testimonials

PEOPLE ARE SAYING

As an investor with significant crypto holdings, BlockFi gave me a valuable tool to get capital, at a fair price, without liquidating my crypto holdings. Aside from offering the best price, their approach to secure storage and thoughtful loan to value ratios gave me confidence that they were the right partner to work with for my cryptocurrency needs.

ANDREW HANCOX
CEO, BLOCK8 VENTURES

As a long term crypto holder, it’s important to me to be able to leverage my existing capital without selling. Earning monthly interest all in one place has simplified how I use my cryptoassets.

ANGELA CERESNIE
CEO, CLIMB CREDIT

BlockFi makes it fun to be a hodler again.

DATOIMEE
REDDIT USER

We have felt strongly that this market needs access to debt beyond fragmented, short term margin trading options in order to reduce volatility, facilitate scale and put the financial infrastructure for this ecosystem on par with other asset classes. We're happy to have BlockFi as part of the Consensys family and see tremendous growth opportunities for their platform.

KAVITA GUPTA
MANAGING PARTNER, CONSENSYS

BlockFi was my first choice when looking to use crypto as collateral for a fiat loan. BlockFi's friendly and professional staff helped make for a very smooth process from start to finish.

STEVEN HATZAKIS
BLOCKFI CLIENT

It feels great to have my crypto be recognized as a real asset, which can used as collateral. I'm going to be able to immediately pay off a credit card I've been carrying a balance on.

CASEY R.
BLOCKFI CLIENT

Learn more about earning crypto interest and crypto-backed loans with BlockFi

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Disclaimer: Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are riot subject to FDIC or SIPC protections. Security is our top priority. Please see our Vulnerability Disclosure Form and Bug Bounty Program.
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Disclaimer: Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections. Security is our top priority. Please see our Vulnerability Disclosure Form and Bug Bounty Program.
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