BankProv, a crypto-friendly bank, has ended its loan offerings collateralized by crypto mining machines as its portfolio of digital-asset loans declined by 50% in Q4 2022.
The bank held $41.2 million in digital asset-related loans at the end of December, of which $26.7 million was collateralized by crypto mining machines.
Due to the drop in crypto mining machine prices, which fell by 85% in 2022, BankProv wrote off $47.9 million in net charge-offs, mostly from mining rig-collateralized loans.
The bank also repossessed mining machines in exchange for debt forgiveness of $27.4 million for undisclosed parties.
BankProv’s holding company, Provident Bancorp, stated in a SEC filing that the amount of crypto mining machine-collateralized loans will continue to decline.
