Sygnum and SATO Technologies are renewing this innovative green financing solution to grow the global ecosystem of carbon-neutral crypto miners.
Sygnum provides cash loans “to green crypto miners who pledge a pre-defined portion of their computational mining power, then sells the mined coins to repay the debt.”
SATO Technologies and CTCAP Group are reportedly the first “to leverage flexible financing solution and boost their combined hash power by over 250 PH/s.”A
This addresses the financing gap “for carbon-neutral crypto mining and supports the industry’s transition towards a sustainable economy.”
Sygnum announces “the launch of its innovative green financing solution for the growing global ecosystem of carbon-neutral crypto miners.”
They can pledge pre-defined portions of “their existing processing power – or hashrate – in return for cash loans provided by Sygnum.” Crypto assets mined “from the pledged hashrate is then sold by Sygnum to repay the debt.”
Mining is the process in which decentralized computer networks “contribute processing power to verify blocks of transactions on a Proof-of-Work (PoW) blockchain.”
The miner who successfully verifies a block “receives a block reward in the blockchain’s native token, for example Bitcoin (BTC) on the Bitcoin network.”
Critics of Proof-of-Work (PoW) blockchains believe “that their inefficient energy use adversely impacts the climate.” Bitcoin attracts the bulk of this criticism “due to its market share and continually increasing energy footprint.”
In response, 58 percent[2] of Bitcoin miners globally “have transitioned to renewable energy sources.”
The speed of this transition is “made possible by miners’ ability to rapidly relocate their operations to places with cheaper, more stable and environmentally friendly energy sources.”
Crypto miners often do “not have access to traditional finance to acquire, run and maintain their energy-intensive mining rigs – costs that can run into the millions annually, even for small operations.”
To support the industry’s transition to renewable energy sources, Sygnum is providing hashrate-backed loans to finance the capacity expansion of miners who can demonstrate ongoing carbon neutral operations. This new green crypto financing solution aims to support green mining and accelerate the industry’s transition to a carbon-neutral economy.
Sygnum’s Head of Credit and Lending, Benedikt Koedel said:
“Sygnum’s strategy is to provide ESG-friendly financing to green miners and support their efforts to bring innovation and sustainability to the global crypto ecosystem. By pledging a portion of their mining hashrate, carbon-neutral miners can obtain the capital they need to expand their operations, increasing the inflow of green crypto assets into the market. Sygnum Bank’s active support for sustainable Bitcoin mining has enabled us to scale up both our operations and hashrate via new mining rigs, and at the same time take another step towards making the crypto industry greener and more efficient.”
As noted in the update:
“With Sygnum’s green mining loan, we were able to scale up our specialist Bitcoin mining equipment (ASICs) and infrastructure. The flexible terms and competitive cost of capital boosted our Zero Emission Mining Strategy and our market position.”
As covered, Sygnum claims it is “the world’s first digital asset bank, and a digital asset specialist with global reach.”
With Sygnum Bank AG’s Swiss banking licence, as well as Sygnum Pte Ltd’s capital markets services (CMS) licence in Singapore, Sygnum says it “empowers professional and institutional clients or qualified investors (e.g., corporates, banks, and other financial institutions) to invest in the digital asset economy with complete trust.”
Sygnum explains that it “operates an independently controlled, scalable, and future-proof regulated banking platform.” Their interdisciplinary team of banking, investment, and Distributed Ledger Technology (DLT) experts claim they are “shaping the development of a trusted digital asset ecosystem.”
The company is founded “on Swiss and Singapore heritage and operates globally.”