SALT's crypto-backed lending solution to address miner challenges

4 Ways Crypto-Backed Lending Addresses Miner Challenges and Enhances Treasury Management

Published Date: September 26, 2023

For those who are true believers in the future of cryptocurrency and understand its long-term value, mission, and vision, the prospect of selling their crypto assets for immediate cash needs can be disheartening. However, the practicalities of running a business and navigating the current financial system often require access to cash. That’s where SALT’s treasury management solution comes into play. We encourage crypto enthusiasts, miners, and businesses to explore this powerful solution as an integral part of their treasury management strategy. By doing so, they can enjoy the best of both worlds – retaining their faith in crypto’s long-term potential while benefiting from the stability and advantages that SALT offers, especially to mining companies. It’s a step towards financial empowerment in a world where crypto and traditional finance coexist.

As you’ll know, mining cryptocurrencies is an intricate process that requires significant computational power and energy expenditure. Miners face a set of unique challenges, and SALT’s crypto-backed lending solution is tailored to address these challenges while enhancing treasury management. Let’s delve into how our offering helps miners:

  1. Lowering Costs with Luxor Mining Pool

    One of the key challenges miners face is the high cost of energy required for cryptocurrency mining. Energy expenses often need to be aligned with the rewards generated from mining activities. This balancing act can be complex, and miners strive to optimize their operations to reduce costs.

    SALT understands the importance of cost optimization for miners. As part of our solution, we collaborate with Luxor Mining Pool, which allows miners to lower their pool fees. This cost-saving measure is a crucial step toward achieving profitability in the mining industry.

  2. Access to Cash While Holding Crypto Assets

    Miners, especially Bitcoin miners, receive their rewards in cryptocurrency. While they believe in the long-term potential of these assets, they also require cash for immediate expenses such as equipment maintenance, power bills, and operational costs. This need for liquidity can put miners in a challenging position, especially when they don’t want to sell their crypto holdings during unfavorable market conditions.

    SALT’s crypto-backed treasury management solution provides an answer to this challenge. Miners can leverage their existing crypto assets as collateral to secure loans. These loans offer the flexibility to access cash over a specified period, allowing miners to be in control of when and how much of their crypto assets they sell, if they choose to sell at all.

  3. Managing Taxable Events

    A significant advantage of using SALT’s crypto-backed lending is the ability to access cash without triggering taxable events. When miners sell their crypto assets, it often results in capital gains tax liabilities. By taking out a loan against their crypto holdings instead of selling, miners can defer tax obligations until a more favorable time, aligning with their long-term approach to asset appreciation.

  4. Leveraging Mining Rewards

    Many mining clients of SALT actively use our platform for their treasury management. They pull their mining rewards into a SALT wallet, effectively consolidating their core assets. Leveraging these assets as collateral, miners can secure loans based on their new collateral value, providing them with access to additional capital.

    This approach not only allows miners to maintain their core crypto holdings but also enables them to benefit from the growth of their collateral assets. It’s a dynamic way for miners to unlock the full potential of their crypto assets while ensuring they have the financial resources needed to operate effectively.

SALT Lending: For true believers in the future of cryptocurrency

In the grand scheme of crypto investment, the importance of staying committed to your assets cannot be overstated. While crypto markets exhibit short-term volatility, the long-term trend has been one of remarkable growth and resilience. SALT’s approach enables you to align with this trend, maintaining your assets and effectively managing your operations to capture the future value of your investments.

You can look at our Treasury Management Solution for Miners here.

Join the growing community of crypto believers who are embracing the power of crypto-backed lending to stay long on their favorite assets and stay liquid in the world of traditional finance.