BitNile Holdings To Launch Bitcoin Lending Platform Via Its Digital Power Lending Subsidiary

The company expects to fund the platform with $100 million worth of Bitcoin through an approved lender

LAS VEGAS, April 21, 2022–(BUSINESS WIRE)–BitNile Holdings, Inc. (NYSE American: NILE), a diversified holding company (“BitNile” or the “Company“) today announced plans to fund up to $100 million in Bitcoin-backed commercial loans to small, publicly traded businesses through its subsidiary, Digital Power Lending, LLC (“PD Loans“California Funding Act License 60 DBO77905).

In 2022, BitNile plans to significantly expand its bitcoin mining capacity, increasing its number of bitcoin miners to 20,600, representing a planned mining capacity of approximately 2.24 exahashes per second. The company plans to hold up to $100 million of self-mined Bitcoin in reserve to support the expansion of commercial lending that will be offered through a new lending platform known as Ault Lending (the “Platform“), powered by DP Lending. Funding for the platform is expected to take place over a period of approximately two years. The company reported revenue from DP Lending’s lending and trading activities of approximately $17 million for the year ended December 31, 2021 and DP Lending ended the year with total assets of approximately $100 million. of dollars.

The platform is designed to lend to publicly traded companies with less than $250 million in market capitalization. The platform is designed to use Bitcoin’s Layer 3 technology to offer “smart contracts” to participating businesses and should also allow participating businesses to borrow against their Bitcoin holdings. Layer three protocols, commonly referred to as application layers, consist of protocols that allow applications to run on blockchains. Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met.

DP Lending is considering partnering with Earnity Inc. (“To win“) to develop layer three technologies. “We look forward to partnering with DP Lending to enable businesses to secure a variety of liquidity opportunities with crypto and fiat assets,” said Dan Schatt, co-founder and CEO of Earnity. “Businesses have a variety of cash, cash management and custody needs that can be met with virtual currencies and decentralized finance platforms, and we look forward to providing a roadmap that can successfully support these institutions. »

The Company expects loans to range between $1 million and $25 million. Small and small cap borrowers typically have very limited access to new capital funding from traditional fiat currency-based sources. The company’s goal is to provide a Bitcoin-backed lender to fund these public companies in a unique way by leveraging today’s DeFi technology and the growing acceptance of Bitcoin around the world. The loan program will allow the borrower to repay a loan using various methods, including cash, bitcoins or, in the case of convertible promissory notes, common stock of the borrower. The platform, which plans to announce more partners including other financial lenders and banks, will initially be funded by Bitcoin mined from BitNile’s mining operations. The company will keep Bitcoin on deposit and plans to gradually expand this opportunity to other Bitcoin owners by depositing their Bitcoin with DP Lending, greatly increasing the availability of funding in the micro-cap and small-cap market. The Company expects the program to begin in May 2022. The Company notes that its current lending platform has been operational for over four years.

Traditional banks are required to hold a certain amount of cash reserves; while DP Lending is not a bank, but an approved lender, it plans to use Bitcoin as reserves on its balance sheet. The company’s goal is to allocate a total capital of $250 million to DP Lending, including the $100 million in Bitcoin. The company’s plans to hold Bitcoin offer a potential upside if Bitcoin’s long-term value increases.

The company’s founder and executive chairman, Milton “Todd” Ault, III, said, “This is the first opportunity for the company to expand the lending program around bitcoin and I’m thrilled that the platform loan from our licensed financial lender offers loans secured by bitcoin. We believe the platform is truly innovative and DP Lending is the first finance company, lender or institution we know of to provide Bitcoin-backed lending on a commercial basis or leverage DeFi technology to uniquely target capitalization assistance to small public enterprises.” Ault explained, “From my many years of business financing, I know only too well the challenges faced by these aspiring entrepreneurs and employers. It seems to me like a natural progression for the company and its subsidiaries to join in order to provide a new single source of capitalization. and to help them grow while creating a new revenue stream in a very positive and mutually beneficial way.”

For more information about BitNile and its subsidiaries, BitNile recommends that shareholders, investors and other interested parties read BitNile’s public documents and press releases available in the Investor Relations section at www.BitNile.com or available at www.sec.gov.

About BitNile Holdings, Inc.

BitNile Holdings, Inc. is a diversified holding company that continues to grow by acquiring undervalued companies and disruptive technologies with global impact. Through its wholly and majority owned subsidiaries and strategic investments, BitNile owns and operates a data center in which it mines Bitcoin and provides mission-critical products that support a wide range of industries, including defense /aerospace, industry, automotive, telecommunications, medical. /biopharma and textiles. Additionally, BitNile extends credit to certain entrepreneurial businesses through an approved lending subsidiary. BitNile’s corporate headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141; www.BitNile.com.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend on or refer to future events or conditions, and include words such as “believes”, “plans”, “anticipates”, “projects”, “estimates”, ‘expects’, ‘intends’, ‘strategy’, ‘future’, ‘opportunity’, ‘may’, ‘will’, ‘should’, ‘could’, ‘potential’ or similar expressions . Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement due to a variety of factors. Further information, including potential risk factors, that could affect the Company’s business and financial results is included in the Company’s filings with the United States Securities and Exchange Commission, including, but without limitation, Company Forms 10-K, 10-Q and 8. -K. All filings are available at www.sec.gov and on the Company’s website at www.BitNile.com.

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contacts

BitNile Holdings Investor Contact:
[email protected] or 1-888-753-2235

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BitNile Holdings To Launch Bitcoin Lending Platform Via Its Digital Power Lending Subsidiary


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