Binance Pool, the crypto mining wing of the global crypto exchange, Binance, has unveiled a $500 million project to support BTC mining and infrastructure providers.
Binance Starts Funding Initiative for BTC Miners
Popular cryptocurrency exchange Binance has just announced its launch of a $500M Miner Lending Project to support the BTC mining industry. The launch was made public via a press release on the Binance website today, 14th October 2022.
According to Binance, the loaning initiative was designed to provide secure debt financing services to global public and private blue-chip bitcoin (BTC) mining and digital asset infrastructure companies. Although the BTC industry has seen similar projects in the past, the new lending project is a first of its kind for Binance Pool.
Binance, in its public statement, noted:
“As one of the world’s leading crypto mining pools, Binance Pool has a responsibility to help maintain a healthy digital asset ecosystem. In light of current market conditions, Binance Pool is launching a $500million lending project to support crypto miners and digital infrastructure providers”.
Conditions for Qualifications
Binance Pool has made its $500 million lending project accessible to private and public miners. This is a much-needed intervention considering the crypto winter taking a toll on companies that man the virtual mines.
However, the fund comes with certain conditions. To qualify for the loan, miners will need to pledge security in the form of physical or digital assets for the loan, which will be 18-24 months long.
Binance loan also comes with interest rates ranging from 5 to 10 per cent.
Binance Set to Work With Cloud Mining Vendors
In announcing its lending project, Binance has also declared its intentions to roll out cloud mining products.
Speaking on the subject, Binance says,
“The cloud mining hash power will be directly purchased from bitcoin mining and digital infrastructure providers, Binance Pool is looking for cloud mining vendors to work with us.”
Will Binance Save the Crypto World?
Due to the weakening Bitcoin prices and higher energy costs, miners have come under tremendous pressure recently, as difficulty increased by 13% in the last two weeks.
Since the beginning of this year, miners worldwide have been selling their Bitcoin to compensate for dwindling profits. There have been several instances when the miners resorted to selling more in a month than they mined.
As a result of the poor markets, several crypto firms have been struggling to keep their heads above water. Compute North is a popular case recently filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. Other mining platforms, such as Iris Energy, sold $100 million in equity to generate some cash.
Compass Mining, on the other hand, closed its Georgia operations. Poolin, which happens to be one of the largest Bitcoin mining pools, froze withdrawals due to the drawn-out bear market.
With the new Binance BTC lending initiative, mining platforms and projects can now access up to $500 million in mining loans. Binance Pool fund seeks to bolster the crypto mining ecosystem amidst dwindling profits.