ViaBTC Collateral-pledged Loan: A Preferred Strategy for Miners’ Cash Flow
The post ViaBTC Collateral-pledged Loan: A Preferred Strategy for Miners’ Cash Flow appeared on BitcoinEthereumNews.com.
Rising hardware, electricity, and O&M costs—together with greater price volatility—have increased profit uncertainty for miners. Under balance-sheet pressure, some sell part of their holdings to pay electricity or expand capacity. When prices later rebound, buying back the same amount often costs more, turning “sell then rebuy” into recurring opportunity loss. A practical alternative is a collateralized loan: pledge BTC/LTC/DOGE/BCH and borrow USDT to cover electricity, repairs, or expansion, while aiming to preserve coin exposure and improve cash flow. This article, drawing on common miner treasury practices and a numerical example, discusses when borrowing can outperform selling and how to use ViaBTC’s Collateral-pledged Loan prudently to enhance capital efficiency. Why miners consider collateralized loans Across recent cycles, asset prices have been volatile and electricity costs have trended upward. Hosting and equipment prices often move with the market, showing phases of increase, so spending schedules rarely align with price peaks. At market lows, ASIC miner quotes are more likely to be discounted; when prices rise, equipment prices usually climb. If coins are sold at lows to meet hard expenses, replacing the original position after a rebound can be costly. By contrast, collateralized borrowing can satisfy near-term cash needs and long-term holding goals at the same time, giving miners more flexibility on timing. Because ViaBTC’s loan uses daily interest and flexible repayment, interest outlay is controllable; in subsequent upswings, interest is often lower than the opportunity cost of selling. Example: selling coins vs. collateralized borrowing Assume you hold 1 BTC at $100,000 and plan to invest $10,000 in a new miner over 30 days. Selling to raise funds You sell 0.1 BTC at the current price. If BTC = $120,000 after 30 days, buying back 0.1 BTC costs $12,000. Opportunity cost: $2,000. Borrowing against BTC You borrow $10,000 USDT at 9.9% APR, daily…
Filed under: News - @ October 16, 2025 10:29 am