Binance launches $500M lending project to support crypto miners

Binance, the world’s top cryptocurrency exchange by volume, recently announced the creation of a $500 million lending pool for bitcoin miners to help businesses through an industry slowdown caused by high energy costs and low bitcoin pricing.

Binance Pool, the company’s specialized service platform for miners, launched the loan initiative as part of its ecosystem, which provides technology, finance, and industry resources to improve revenues from cryptocurrency mining.

According to an official blog post published on October 14, the Binance Pool will allow access to a $500 million loan fund subject to many criteria, including an 18-to-24-month duration, 5% up to 10% interest rates, and certain real or digital assets as collateral.

To determine the borrower’s creditworthiness, the corporation will use a variety of measures such as current performance, mining power, and security quantity.

Binance Pool will also introduce cloud mining solutions, acquiring cloud mining hashing power directly from Bitcoin mining and digital infrastructure suppliers.

Amid the market collapse, other companies have begun to give miners loans, like Maple Finance, a decentralized finance platform that established a lending pool with a 10% interest rate. Jihan Wu, the founder of the crypto mining business Bitmain, has also formed a $250 million fund to purchase troubled mining companies’ assets at a discount.