Share this article
BankProv Stops Offering Loans Collateralized With Crypto Mining Machines
The crypto-friendly bank wrote off $47.9 million in loans last year, primarily mining rig-collateralized debt.
Updated May 9, 2023, 4:06 a.m. Published Jan 31, 2023, 1:33 p.m.
Crypto-friendly BankProv has stopped offering loans collateralized with crypto mining machines and said its portfolio of digital-asset loans fell 50% in the fourth quarter as some impaired loans were sold and a line of credit was repaid.
The Massachusetts-based bank held $41.2 million in digital asset-related loans at the end of December. Of that, $26.7 million is collateralized with crypto mining machines, and the amount "will continue to decline as the bank is no longer originating this type of loan," holding company Provident Bancorp (PVBC) said in a Tuesday filing with the U.S. Securities and Exchange Commission.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The crypto mining industry started borrowing heavily in 2021 using mining machines as collateral and often using the funds to buy more machines. That model started breaking down along with the bear market in cryptocurrencies. Mining machine prices fell by about 85% in 2022, according to data from services firm Luxor Technologies analyzed by CoinDesk, leading to margin calls and collateral seizures when borrowers couldn't service the debt.
Read more: Crypto Miners Face Margin Calls, Defaults as Debt Comes Due in Bear Market
Through 2022, BankProv wrote off $47.9 million in net charge-offs, primarily from loans collateralized by mining rigs. It said it repossessed mining machines in September in exchange for forgiving $27.4 million of debt for undisclosed parties.
BankProv had a total of $1.42 billion of net loans at the end of December.
Read more: Bitcoin Miner Blockmetrix Raises $20M in Debt From BankProv and CrossTower
Di più per voi
Cosa sapere:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
USDC Issuer Circle Secures Abu Dhabi's ADGM License in Middle East Expansion
The license allows Circle to expand USDC payment and settlement tools across the United Arab Emirates.
What to know:
- Circle has obtained a Financial Services Permission license from Abu Dhabi Global Market, allowing it to operate as a Money Services Provider in the UAE.
- The stablecoin issuer has appointed Dr. Saeeda Jaffar, former manager at payments firm Visa.
- The approval comes as part of the UAE's emergence as a global hub for regulated digital assets, following similar licenses granted to Binance.
Top Stories
