IPv4.Global has launched a loan product that accepts public IPv4 addresses as collateral, a response to the lack of recognition of these assets in conventional lending. Building on Cogent's previous issuance of $206 million in debt notes backed by IPv4 assets, IPv4.Global aims to assist companies lacking working capital leverage their IPv4 holdings. The service has already facilitated a loan for a datacenter operator, and terms of each loan are contingent on the borrower's financial health and the market's ability to absorb the collateral in case of default.
Companies needing working capital haven't been able to leverage the value of their IPv4 addresses. Most commercial lenders wouldn't include IPv4 holdings, so we saw a need we could serve.
While we're using the IPv4 addresses as our primary collateral, the specific terms of each loan will depend on the borrower's credit profile and balance sheet.
If there is a default, we will be able to convert the collateral into cash by selling the IPv4 addresses.
IPv4.Global can lend up to $100 million and possibly more for the right client.
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