A company signs contracts with its customers for a recurring payment schedule, and then puts those contracts into Pipe’s platform for trading, where investors will buy the contracts. In turn, the transaction becomes an instant source of funding for the company, which it can use to fund its growth without diluting the shareholders by offering equity or locking in an expensive debt facility.
Source: https://www.coindesk.com/business/2022/03/22/trading-platform-pipe-launches-alternative-financing-solution-for-bitcoin-miners/?utm_medium=referral&utm_source=rss&utm_campaign=headlines