Posted on 11/18/2022 8:46:48 AM PST by EBH
Provident Bancorp in Amesbury, Massachusetts, is grappling with a sizable cryptocurrency hit that it expects will result in a third-quarter loss.
The $1.8 billion-asset bank this week delayed its latest earnings filing but estimated a third-quarter loss of $27.5 million related to loans to a cryptocurrency miner. That would compare with net income of $5.1 million reported for the third quarter of 2021.
Provident cautioned in a regulatory filing Tuesday the official loss could exceed its estimates. It cited the highly publicized meltdown of the cryptocurrency mining industry in recent months.
The "volatility in Bitcoin and rising energy costs called into question the financial stability of the company's borrowers who hold digital asset mining loans," Provident said. "The collectability of all principal and interest related to these loans, as well as the value of the cryptocurrency mining rigs that serve as the underlying collateral," are questionable, it said in the filing.
The company said its expected loss is linked to a partial writedown on cryptocurrency mining rigs that were repossessed in exchange for the forgiveness of a $27.4 million loan. Excluding that loan, Provident said its digital-asset mining loan portfolio totaled $76.5 million at the close of the third quarter.
The company has reviewed that portfolio and estimated "a majority to be impaired." It placed the impaired loans on nonaccrual status and said it set aside "significant related specific reserves" for possible losses.
Jim Dobbs Reporter, American Banker
Besides goods and services, cheap Federal Reserve money and near-zero interest rates also caused inflation in a wide range of asset and speculative prices
That bubble is being deflated.
Smells like more FTX fallout.
Now we’re going to see all kinds of polls to regulate bitcoin, and other crypto’s. Then the feds will roll out their own US government digital that in an or will Jan twist, they will call “crypto”. A crypto that they can control every transaction you make, see every transaction you make, or simply suck it out of your account, or give it an expiration date, restrict what you can and cannot do with it. You know… Crypto.
Almost like it was a plan or something for FTX to do its thing. Steal billions from unwitting people, and provide a justification for a federal takeover of the currency with the police state money item.
Voice to text. That should’ve been in an Orwellian twist
CRYPTO Rock
Artist: Apologies to Chubby Checker
Every CRYPTO boy and girl
All around the CRYPTO world
Gonna do the CRYPTO rock
All around the CRYPTO clock
Jack be CRYPTO, Jack be quick
Jack go unda CRYPTO stick
All around the CRYPTO clock
Hey, let’s do the CRYPTO rock
CRYPTO lower now
CRYPTO lower now
How low can you go?
First you spread your CRYPTO feet
Then you move to CRYPTO beat
CRYPTO ankoCRYPTOneee,
Bend back like a CRYPTO tree
Jack be CRYPTO, Jack be quick
Jack go unda CRYPTO stick
All around the CRYPTO clock
Hey, let’s do the CRYPTO rock
Get yourself a CRYPTO girl
Give that chick a CRYPTO whirl
There’s a CRYPTO moon above
You will fall in CRYPTO love
Jack be CRYPTO, Jack be quick
Jack go unda CRYPTO stick
All around the CRYPTO clock
Hey, let’s do the CRYPTO rock
Don’t move that CRYPTO bar
You’ll be a CRYPTO star
How low can you go?
(whistle for the rest of the song)
Ping!.................
FTX is the tip of the iceberg. This goes so much deeper. It’s going to get very ugly. Repeat after me: No bailouts.
I am not a fan of crypto, but the notion that the US government can effectively regulate it is a total joke.
It is by definition an international currency—and the most the US government can do is regulate its use inside the borders of the US.
“No bailouts.”
Wait a minute—it is a critical national priority to bail out any corporations/banks that bribed our leading politicians!
;-)
People who get involved in crypto deserve what happens to them. The world’s greatest ever ponzi scheme.
Reichstag fire 2022.
The 5 Craziest and Most Telling Videos of Sam Bankman-Fried
He discusses the very scam he ran .
In front of Congress, he condemned banks for their lack of transparency and “non-reported” deals.
Crypto is international currency? What backs it up?
US Dollar is not backed by gold or silver any more, but at least it is backed by federal government’s power of taxation.
So we should buy crypto by trusting whom?
Yes, but the US government recognizes no borders. The FBI just announced it was investigating a shootout between the IDF and the Palestinian terrorists. Homeland security is arresting people in Columbia. We select and deselect leaders in Libya, Syria, Ukraine, etc. we are trying to do it in Russia again.
The US government claims extra territorial jurisdiction. Hell, they literally even claim the moon in their legal jurisdiction.
Provident wasn’t very provident.
“Crypto” is a very risky investment. They should have know that.
People who buy things that have no inherent value (such as crypto currencies or democrat programs) get what they deserve.
Invest in a ponzi scheme and you will eventually get caught in it.
I know scammers in India like to transfer US dollars or Gift cards to crypto.
I want nothing to do with crypto—my preference is tulip bulbs.
;-)
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