ViaBTC Collateral-pledged Loan: A Preferred Strategy for Miners’ Cash Flow

Rising hardware, electricity, and O&M costs—together with greater price volatility—have increased profit uncertainty for ￰0￱ balance-sheet pressure, some sell part of their holdings to pay electricity or expand ￰1￱ 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 ￰2￱ 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 ￰3￱ miners consider collateralized loans Across recent cycles, asset prices have been volatile and electricity costs have trended ￰4￱ and equipment prices often move with the market, showing phases of increase, so spending schedules rarely align with price ￰5￱ market lows, ASIC miner quotes are more likely to be discounted; when prices rise, equipment prices usually ￰6￱ coins are sold at lows to meet hard expenses, replacing the original position after a rebound can be ￰7￱ contrast, collateralized borrowing can satisfy near-term cash needs and long-term holding goals at the same time, giving miners more flexibility on ￰8￱ 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 ￰9￱ borrowing Assume you hold 1 BTC at $100,000 and plan to invest $10,000 in a new miner over 30 ￰10￱ to raise funds You sell 0.1 BTC at the current ￰11￱ 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 interest. 30-day interest ≈ $10,000 × 0.099 × (30/365) ≈ $81.37. You repay $10,081.37 and still hold 1 ￰12￱ the price rises as above, you effectively preserved the upside for ≈ $81.37.

In rising or range-bound markets, daily-interest collateralized loans often outperform direct ￰13￱ you expect continued weakness, borrowing raises mark-to-market risk and calls for tighter control of LTV and position ￰14￱ extreme moves, adding collateral or making a partial repayment can reduce the risk of forced ￰15￱ figures above are illustrative estimates used for scenario demonstration and to explain the ￰16￱ are not actual market prices or predictions and should not be relied upon as investment ￰17￱ to use the loan more effectively For electricity bills, short-term borrowing in USDT and repaying from mining payouts can reduce losses from selling at market ￰18￱ expansion, if equipment is more cost-effective during pullbacks, miners often purchase first with a short-term loan and cover principal and interest with cash flow from added hashrate—after assessing power tariffs, payback periods, downtime risk, and price ￰19￱ an asset-management perspective, collateralized loans can ease short-term pressure, improve exit timing, and reduce slippage and market ￰20￱ emergencies—equipment failures or ad hoc expenses—fast funding helps avoid the “panic sell then rebuy” cycle and its frictional ￰21￱ ViaBTC Collateral-pledged Loans ViaBTC’s loan supports pledging BTC/LTC/DOGE/BCH to borrow ￰22￱ process is straightforward, with fast approval and ￰23￱ is accrued daily at 9.9% APR, with flexible ￰24￱ minimum loan is 50 USDT, with no upper limit on borrowing.

Overall, the mechanism aligns with miners’ cash-flow cycles and ROI planning, making it suitable for short-term liquidity needs while retaining coin ￰25￱ and notes Collateralized loans are not “zero-risk.” A prudent approach is to size borrowing to predictable cash flow and keep a safety buffer at the outset so the collateral ratio stays in a more stable ￰26￱ prices fall sharply, promptly add collateral or partially repay to reduce the chance of forced ￰27￱ borrowing, monitor email, site messages, and app notifications, and act in time to avoid unnecessary ￰28￱ needed, set multiple alerts and periodically review the collateral ratio and liquidation ￰29￱ For miners, collateralized lending offers a way to secure liquidity without selling coins: it can cover electricity, maintenance, and expansion while retaining coin-denominated exposure in rising or choppy ￰30￱ to borrow, when to do so, and at what size should reflect electricity prices, equipment costs, billing cycles, price trends, and risk ￰31￱ one of the top three BTC mining pools, ViaBTC provides a collateralized loan that is convenient, reliable, and cost-effective, making it a practical tool for miners’ cash-flow management.