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.
Make us preferred on Google
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
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
How the ultra-wealthy are using bitcoin to fund their yacht upgrades and Cannes trips
Cometh founder Jerome de Tychey is applying DeFi lending and borrowing on platforms like Aave, Morpho, and Uniswap to structures that help the ultra-wealthy secure loans against their massive crypto fortunes.
What to know:
- Wealthy investors who hold much of their fortune in crypto are increasingly turning to decentralized finance platforms to secure flexible credit lines without selling their digital assets.
- Firms like Cometh help family offices and other rich clients navigate complex DeFi tools, using assets such as bitcoin, ether and stablecoins to replicate traditional Lombard-style collateralized loans.
- DeFi loans can be faster and more anonymous than traditional bank credit but carry volatility and liquidation risks, and Cometh is also experimenting with applying DeFi strategies to traditional securities via ISIN-based tokenization.
Top Stories
