BitFuFu Launches Marketplace Targeting Coupons Issued by Bitman
Cloud mining specialty BitFUFU announced launching a marketplace where miners can trade their discount coupons offered against the Antiminer rigs. The coupons were advanced to the miners by Antiminer manufacturer Bitmain.
The leading manufacturer of crypto mining equipment offered coupons to miners to stimulate the sale of the mining equipment. Unfortunately, most mining firms saw their fortunes decline as bitcoin prices plummeted.
Saving Discount Coupons from Expiry
The resulting liquidity crisis eroded the cash reserves that miners could otherwise spend to acquire new equipment. The inability to afford new machines made it impossible to utilize the discount coupons.
Bitmain explained that the issuance of discount coupons targeted to appreciate and entice loyal customers as the equipment sales as the crypto winter prolonged. However, many coupons remained unutilized as crypto miners suffered cash shortages to spend on acquiring new equipment.
Recently, bankrupt miners, including Core Scientific and Celsius, admitted mulling selling coupons in their possession. The bankrupt firms consider the coupons capable of earning the estate additional funds to settle creditors.
Discount Coupons Carrying Million Dollar Value
BitFuFu marketplace started operations on Monday February 20. Its opening is a timely reprieve for the holders of the million-dollar coupons. Recently, Luxor Technologies chief operating executive Ethan Vera estimated the existence of coupons exceeding $50 million. The executive at the mining services firm indicated that most coupons would become available as their holders become wary of their expiry.
Holders are battling cash shortages that would enable them to utilize the coupons as they acquire new equipment. Recently, CleanSpark indicated that the coupons could yield high value. In particular, the crypto miner confided lowering the price of its 20000 machines acquired recently by 26%.
Celsius Network Approval to Sell Bitmain Coupons
The awareness of the inherent value in the coupons is evident in the Celsius Network motion seeking approval to sell the coupons before they expire. The bankrupt firm indicated that Bitmain’s coupons have inherent value that could help optimize value for its creditors.
The firm indicated that the discount coupons were assets as they could generate future economic value for the holders. The company attorney’s attorneys submitted that the assets could raise an additional $7.4 million when sold on the secondary market before expiry.
Economic Value that Holders of Coupons Can Obtain through Secondary Market
Bitmain stated that the coupons offer 10-30% value for every Bitmain purchase. Also, one can sell coupons to third parties.
New York court Judge Martin Glenn issued a favorable ruling on February 16, directing Celsius to sell the credits estimated to raise a further $7 million.
Meanwhile, BitFuFu’s move to open the marketplace as a channel where those coupons can be leveraged to raise additional funds.
Editorial credit: Jarretera / Shutterstock.com
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