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Maple Finance records a loss of $7M at end of 2022

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Maple Finance records a loss of $7M at end of 2022

Maple Finance records a loss of $7M at end of 2022 Christian Nwobodo · 6 hours ago · 1 min read

Maple Finance Q4 report shows it originated about $87 million across 23 new loans, which is down by 67% from its previous record of $262 million.

1 min read

Updated: January 20, 2023 at 4:31 pm

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Cover art/illustration via CryptoSlate

Institutional crypto lending protocol Maple Finance has reported a net loss of about $7 million at the end of the fourth quarter of 2022 as it moves to close its lending pools on Solana.

Maple Finance was launched in May 2021 as a decentralized credit market for institutional borrowers and lenders. Since its inception, the lending protocol has offered over $1.9 billion in corporate loans.

However, the ripple effect of the prolonged bear market and FTX collapse has affected borrowers’ appetite for its loan offerings.

In Maple’s Q4 2022 Treasury report, the lending protocol disclosed that it originated about $87 million across 23 new loans, which is down by 67% compared to its record of $262 million in the third quarter. As a result, Maple closed the fourth quarter with total active liquidity of $58 million, as against $326 million when the quarter began.

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Over the reporting period, Maple recorded a revenue of about $310,092, while its expenses stood at roughly $3.57 million.

Furthermore, Maple incurred a loss of $151,933 from its M11 Credit Pool due to Orthogonal Trading’s insolvency. As reported on Dec. 5, Maple severed business ties with Orthogonal Trading as the lending delegate was reportedly insolvent, leading to an expected loss of roughly $3 million

The Q4 report added that since Maple’s inception, its revenue-to-date stood at  $5 million, while its expenses totaled $12.1 million. Consequently, the crypto lender recorded a net loss of approximately $7 million by the end of 2022.

In efforts to cut operating costs, Maple said it will suspend all lending pools on Solana and reduce its quarterly expenses from about $2.4 million to $1.2 million.

With approximately $6.1 million in its Treasury, Maple said it will work to increase its runway up to 16 months in a zero-revenue environment.

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Bankruptcy

Tether denies borrowing from bankrupt Celsius

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Tether denies borrowing from bankrupt Celsius

Tether denies borrowing from bankrupt Celsius Oluwapelumi Adejumo · 9 hours ago · 1 min read

Celsius’ examiner report claimed Tether had over $2 billion Celsius exposure and was an “existential threat” to the lender’s financial health.

1 min read

Updated: February 1, 2023 at 6:37 am

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Cover art/illustration via CryptoSlate

Tether’s (USDT) chief technology officer Paolo Ardoino has denied that the stablecoin issuer took a loan from Celsius in a Jan. 31 tweet.

Ardoino responded to a Twitter thread on the Celsius examiner report that said that Tether, alongside Three Arrows Capital and Alameda Research, could exceed their credit limits with the bankrupt lender.

The report claimed that the stablecoin issuer had over $2 billion exposure to Celsius and was considered an “existential threat” to the lender’s financial health. It added that Celsius’ couldn’t survive a Tether default because its capital was insufficient.

“The Tether exposure eventually grew to over $2 billion -a number so large that in late September 2021, that exposure was described to the Risk Committee as present[ing] an ‘existential threat’ to Celsius.”

However, Ardoino has denied these claims saying the document either made a typographical error or a mischaracterization. According to him, Tether never borrowed from Celsius.

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In a July 2022 statement, Tether said it liquidated a loan to the crypto lending firm without incurring any losses. The stablecoin issuer did not state the dollar value of the loan.

Meanwhile, Tether said it would stop its secured lending practices in 2023.

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Bitcoin

Bitcoin miner Greenidge lost $130M in 2022 Q4; restructures debt with NYDIG, B. Riley

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Bitcoin miner Greenidge lost $130M in 2022 Q4; restructures debt with NYDIG, B. Riley

Bitcoin miner Greenidge lost $130M in 2022 Q4; restructures debt with NYDIG, B. Riley Oluwapelumi Adejumo · 5 hours ago · 2 min read

The Bitcoin miner restructured its debt with its creditors, giving it more time to repay and further opportunities to reduce its debt burden.

2 min read

Updated: January 31, 2023 at 6:47 pm

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Cover art/illustration via CryptoSlate

Bitcoin (BTC) mining firm Greenidge said it lost about $130 million during the fourth quarter of 2022 while earning just $15 million, according to a Jan. 31 statement.

The BTC miner was one of the several companies that had a difficult 2022 due to the challenging market conditions.

“Greenidge ended the quarter with approximately $16 million of cash and fair value of crypto currency holdings, of which less than $1 million was cryptocurrency holdings, and approximately $152 million of debt, net of debt issue costs.”

Greenidge added that it sold its subsidiary, Support.com, for $2.6 million on Jan. 17.

Reduces debt with NYDIG to $17 million

The firm said it restructured its secured debt with crypto lender New York Digital Investment Group (NYDIG) to $17 million.

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Greenidge said it transferred the rights of certain miners and some unnamed credits and coupons to NYDIG. The transferred assets reduced its debt by approximately $59 million.

The Bitcoin miner added that it could further cut its debt by $10 million if it can help NYDIG secure the rights to a mining facility within the next three months.

Greenidge revealed that it entered into a five-year hosting agreement with the lender, adding that the deal  contains a “profit-sharing component.” The agreement terms would also see NYDIG pay a hosting fee that covers the cost of power and the management of the mining facilities.

Despite this new restructuring, Greenidge still owns “10,000 miners with a capacity of approximately 1.1 EH/s.”

Restructures another $11 million in debt

The struggling BTC miner further revealed that investment bank B. Riley Financial has agreed to restructure an $11 million promissory note.

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Greenidge said it would make a principal payment of $1.9 million to B. Riley, and no further payments are expected on the notes till June. However, if the miner can pay  $6 million of its debt before June 20, B. Riley agreed to cut its loan repayment to $400,000 monthly from the current $1.5 million.

Greenidge added that it wants to sell excess real estate from its South Carolina mining facility to repay part of the promissory note.

The miner would pay an amendment fee of $1 million to B. Riley with its stock option. Besides that, the investment bank and an affiliate of Atlas Holdings will purchase an additional $2 million of Greenidge’s stock.

Speaking about the restructured debts, Greendige’s CEO Dave Anderson said:

“The debt restructuring we’ve announced today significantly improves our balance sheet and provides us with a clear path forward as we enter 2023… These agreements have effectively reduced our secured debt balances with these lenders from approximately $87 million to approximately $26 million and have the strong potential to allow us to further reduce our debt.”

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DeFi

Four RWA lending protocols rank among top 10 lending apps with largest collected interest 

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Four RWA lending protocols rank among top 10 lending apps with largest collected interest 

Four RWA lending protocols rank among top 10 lending apps with largest collected interest  Zeynep Geylan · 1 hour ago · 2 min read

TrueFi, Maple Finance, Goldfinch, and Centrifuge collected the third, fourth, seventh, and tenth largest sum in interest, respectively.

2 min read

Updated: January 25, 2023 at 2:24 pm

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Cover art/illustration via CryptoSlate

Four Real-World Asset (RWA) lending protocols ranked among the top ten Defi lending protocols that collect the largest sum of 180-day cumulative interest fees paid by users, according to crypto influencer Defilgnas’ recent analysis.

TrueFi (TRU), Maple Finance, Goldfinch (GFI), and Centrifuge (CFG) are ranked third, fourth, seventh, and tenth, respectively, according to @Defilgnas.

Top 10 Defi lending protocols by cumulative daily fees

As of Jan. 24, TrueFi owns the third-largest incremental interest fees collected in the past 180 days with $12.1 million. Maple Finance follows TrueFi as a close fourth with $11.7 million. Goldfinch and Centrifuge also make it into the top ten with $5.6 million and $3.2 million, respectively.

In addition, MakerDAO, which ranks sixth on the list with $6.6 million, is also generating 57% of its total revenue from RWAs.

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Active loans worth $326M

The cumulative value of the active loans of these four RWA protocols also adds up to $326 million, according to data.

Active loans value by Protocol

The chart includes Clearpool, Ribbon Lend, and Credit, in addition to TrueFi, Maple Finance, Goldfinch, and Centrifuge. Altogether, the total value of active loans given by these nine protocols sits at $361 million.

TrueFi, Maple Finance, Goldfinch, and Centrifuge account for 90.3% of this sum, with a collective amount of $326 million.

Maple Finance contributes the most considerable bulk to this with $127 million worth of active loans. Goldfinch, Centrifuge, and TrueFi also add $103 million, $77 million, and $19 million, respectively.

The chart above doesn’t include Maker Dao’s active RWA loans, which stand at around $620 million.

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