04 / CONTRACT
Rent fixed by contract
A loan repaid by a big customer
The GPU company already has a big customer, like Microsoft, signed up to rent its GPUs for years. The customer pays rent into an account the pool controls, so you get paid before the GPU company does.
- You get
- A fixed payment, taken straight out of the customer's rent
- How long
- About 3 years, paid back monthly
- Safety net
- The customer's contract, plus the GPUs
- If rent drops
- No effect while the customer keeps paying. If it walks away, this becomes a fixed-rate loan in a falling market.
- Onrack's fee
- 0.75 points of the interest
05 / BRIDGE
2 to 4 months
A short bridge loan
A GPU company needs chips now, but its big long-term loan is still being arranged. You fill the gap, and the long-term loan pays you back in full.
- You get
- Your money back with interest when the long-term loan pays out
- How long
- 2 to 4 months, then the money can go into the next deal
- Safety net
- The chips, plus a long-term lender that has already signed up
- If rent drops
- Matters only if the long-term lender backs out. Then you are stuck in a long loan to a small company.
- Onrack's fee
- 0.75 points of the interest