- As captured in the publication, $500 million worth of loan would be offered by Binance Pool for a term of 18 to 24-month.
- The interest rate currently ranges from 5 percent to 10 percent in addition to the security that will be offered by the Miner Lending project to physical or digital assets.
Binance, the world’s largest crypto exchange by volume, has disclosed its intention to support the crypto mining ecosystem. As part of the move, Binance Pool has introduced a $500 million miner lending project for BTC mining. According to the company, this project is the first of its kind for Binance Pool.
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 $500 million lending project to support crypto miners and digital infrastructure providers.
As part of its announcement, the company disclosed that it will focus on providing debt financing for both private and public Bitcoin miners. In addition, it plans on providing support for crypto asset infrastructure worldwide. The Binance Smart Pool is known for its guaranteed minimum income and simple operations.
The Pool allows users to auto-switch hash rates to mine different cryptos using the same algorithm to boost profits. As stated on the website, the Binance Smart Pool is compatible with the SHA256 algorithm. This means the hash rate of users can be automatically switched between BTC, BCH, and BSV. The announcement, however, did not provide clarity on the inclusion of Gala, Ethereum and other cryptos to this support program.
Binance Smart Pool $500 million worth of loan
As captured in the publication, $500 million worth of loan would be offered by Binance Pool for a term of 18 to 24-month. Also, the interest rate would currently range from 5 percent to 10 percent in addition to the security that will be offered by the Binance Miner Lending project to physical or digital assets.
The company is also focused on working with several cloud mining products.
The Pool intends to launch cloud mining products. As 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.
The introduction of this support amid the crypto winter could be a huge relief to crypto miners seeking capital support.
Last year, it was reported that miners were selling their BTC holdings to cover their operational costs. This was confirmed by Arcane Research. Researchers observed that miners sold over 100 percent of their output in May 2021 when the asset’s value fell by around 45 percent.
According to Joe Burnett, an analyst at Bitcoin mining firm Blockware Solutions, miners were left with no option with the rising hash rate and mining difficulty.
Over the past six months, the hash rate and mining difficulty have increased while the price of bitcoin has dropped. These are both negatives for existing miners as both works to compress margins.