GoMining has rolled out Instant Funds, a new feature that allows eligible holders of digital Bitcoin miners to access stablecoin liquidity without selling their mining assets. The service, previously available in a closed testing phase, is now open to users in supported markets through the GoMining app.
With Instant Funds, users can lock an eligible NFT-based miner as collateral and receive USDT or USDC directly into their GoMining balance. While the position remains active and below the liquidation threshold, the collateralized miner continues to mine Bitcoin, with rewards accruing to the holder. This setup lets miners maintain their earning potential while gaining access to working capital.
Key terms and limits
Instant Funds positions come with a 30-day term, a 0% annual percentage rate (APR), and mandatory automatic renewal. An origination fee between 1.5% and 2.5% is charged at the opening of each position and at every 30-day renewal, with the exact rate depending on the user's VIP level.
Users can borrow up to 30% of their miner's collateral value, with a minimum loan amount of $5. The total amount available through Instant Funds is capped at $10,000 per user, though users can open multiple positions within that overall limit.
Liquidation and buyback process
If a position reaches the 60% loan-to-value (LTV) liquidation threshold, it enters a seven-day buyback period. During this period, and throughout any subsequent auction, mining rewards generated by the collateralized miner are forfeited and not returned to the user. This mechanism is designed to protect the lender while giving borrowers a window to address their positions.
Eligibility and availability
At launch, Instant Funds is available for miners with an energy efficiency of 12 watts per terahash (W/TH) or better. Eligible miners must be held in the user's GoMining platform wallet, cannot be listed on the company's secondary marketplace, and cannot have an active Mine Now, Pay Later (MNPL) plan or an overdue auto-upgrade subscription.
GoMining has indicated that it plans to raise the eligibility threshold over time, allowing more miners to qualify for the service. The initial rollout is the first stage of broader availability.
To access Instant Funds, users must complete KYC Level 1 verification. Eligible users in the European Economic Area (EEA) who have completed the required verification can access funds in USDC.
The launch of Instant Funds comes as the broader crypto mining sector continues to seek innovative financing solutions. For context, traditional miners have faced challenges in accessing capital without selling their equipment, and this type of collateralized lending could offer a new avenue. The move also aligns with trends in the digital asset space, where platforms are increasingly offering instant trading capital and similar liquidity tools.
GoMining's approach is part of a wider push to integrate DeFi-like features into mining operations. As the industry evolves, such offerings may become more common, potentially impacting how miners manage their balance sheets. For investors, the development highlights the growing intersection of mining and decentralized finance, a trend also seen in other platforms like Bull DeFi.
While the feature is currently limited to certain miners and regions, its expansion could signal a shift in how mining assets are utilized. The company's decision to allow continued Bitcoin rewards during active loans is a notable differentiator, as it reduces the opportunity cost for borrowers.
This article is for informational purposes only and does not constitute financial advice.
