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Almost $4 Billion in Bitcoin Miner Loans Are Coming Under Stress

  • Loans backed by mining rigs increasingly underwater amid rout
  • Crypto lenders seen at risk as Bitcoin, machine prices fall
Cryptocurrency mining rigs at a Bitfarms facility in Saint-Hyacinthe, Quebec, Canada.

Cryptocurrency mining rigs at a Bitfarms facility in Saint-Hyacinthe, Quebec, Canada.

Photographer: James MacDonald/Bloomberg
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The prolonged slump in Bitcoin is making it more difficult for some miners to repay the up to $4 billion in loans they have backed by their equipment, posing a potential risk to major crypto lenders.

A growing number of loans are now underwater, according to analysts, as many of the mining rigs lenders accepted as collateral have now halved in value along with the price of the world’s largest digital token.