- BitNile Holdings to provide small businesses a platform to borrow Bitcoin.
- It will do so by leveraging DeFi technology.
- The company is looking to grow its Bitcoin mining capacity as well.
With the crypto industry booming, firms are taking initiatives to expand in the space of digital assets. On April 21, 2022, the digital power corporation, BitNile Holdings Inc. announced that it will utilize its subsidiary, Digital Power Lending, LLC to process funds of up to $100 million in commercial loans. This step will help small and publicly traded companies “secure a variety of liquidity opportunities with crypto and fiat assets,” as stated by the co-founder and CEO of Earnity, Dan Schatt.
BitNile, the Bitcoin mining provider, has plans to expand the capacity of its mining production up to 2.24 exahashes per second, and to 20,600 Bitcoin miners. They are also planning to stock up on $100 million of Bitcoin that they have mined to fuel their growth. The company will be offering commercial loans via a new platform named, “Ault Lending”, which will be able to lend below $250 million in market capitalization.
DP lending will collaborate with Earnity Inc to create Bitcoin layer three technologies to offer “smart contracts”. These in turn will allow companies to borrow using their holdings.
“This is the Company’s first opportunity to expand the lending program around Bitcoin and I am pleased that the lending platform of our licensed financial lender will be offering Bitcoin-backed loans to small public companies. We believe the Platform is truly innovative and believe DP Lending is the first financial company, lender or institution that we know of to provide Bitcoin-backed lending on a commercial basis or leverage DeFi technology to uniquely target capitalization assistance to small public companies,” said Milton “Todd” Ault III of Ault Companies.
He further explained this issue and said, “From my many years of financing companies, I know all too well the challenges faced by these aspiring entrepreneurs and employers. It strikes me as a natural progression of the Company and its subsidiaries to join to provide a new unique source of capitalization and to assist in their growth while creating a new revenue stream in a very positive and mutually beneficial way.”