Pipe Launches “Mine Now, Pay Later,” The Bitcoin Mining Industry’s First Alternative Financing Solution.
- Trading Systems
- 22.03.2022 01:35 pm
Pipe’s New API Powers Financing Options for the Entire Recurring Revenue Industry
Pipe, creator of the world's first trading platform for recurring revenues, launched an innovative “Mine Now, Pay Later” financing offering for bitcoin mining hardware and hosting companies. This empowers bitcoin mining hardware companies to offer payment terms to their customers on mining equipment and services. In conjunction with this launch, Pipe released the Pipe API that now allows any company with a recurring revenue business model to securely sync to the Pipe trading platform to get up-front capital for their future recurring revenue streams. These two initiatives further establish Pipe as the platform of platforms creating the building blocks for embedded finance and access to the capital markets for any business with recurring revenue.
Bitcoin mining is performed on dedicated mining hardware—ASICs—that solve computational math problems at a very fast rate. Currently, ASICs cost upwards of 10,000 USD apiece, and the price is climbing steadily due to supply constraints and the exceptional return on investment that mining provides. To date, there have been very limited financing options for these devices by traditional financial institutions. Now, Pipe is providing access to the capital markets for bitcoin mining hardware companies and other industries with innovative business models for which traditional finance has not historically provided support.
“The launch of Pipe’s bitcoin mining solution and the Pipe API are a clear sign of our intention to shine the light on markets and businesses that have flown under the radar of traditional debt and equity financing,” says Harry Hurst, co-founder and co-CEO of Pipe. “2021 was a watershed year for Pipe and the recurring revenue asset class, and by starting 2022 with initiatives like these, we are demonstrating our commitment to making Pipe the platform of platforms for any company with recurring revenue looking to grow their business on their terms.”
Compass Mining, the world's first and largest online platform for bitcoin mining hardware and hosting, has been working with Pipe on the “Mine Now, Pay Later” offering for several months and is the first company to broadly offer it to its customer base. Customers who purchase Compass Mining’s bitcoin mining equipment can now pay for managed hosting services in monthly installments and Compass Mining can trade these contracts on the Pipe platform to get fully paid up front.
“We believe everyone should be able to mine bitcoin, and Pipe’s ‘Mine Now, Pay Later’ is a big step in this journey,” says Whit Gibbs, CEO of Compass Mining. “Together with Pipe, we are accelerating the growth of bitcoin mining by democratising access to the critical financing options that traditional banking institutions have ignored.”
The Pipe API is the logical extension of the Pipe trading platform that enables companies to instantly transform their recurring revenue into up-front capital. Companies in various markets have been testing the beta version of the API. The bitcoin mining and hosting vertical is a unique example of the power of the API and how it will help extend access to financing for less traditional industries.