Binance, the world’s largest cryptocurrency exchange, launched a $500 million loan fund to help bitcoin miners after recognizing “tough market conditions”.
The Binance project aims to provide funding to Bitcoin mining companies and public and private digital asset infrastructure around the world. Meanwhile, Binance Pool plans to launch cloud mining products and is looking for suppliers.
The bear market had profound effects on almost all players in the industry, especially mining companies. Amid rising fuel and electricity prices and the slowdown in the cryptocurrency market, this group has been hit hardest, with many miners out of business.
The lending project was launched by Binance Pool, the company’s dedicated services platform for miners as part of its ecosystem that provides technology, capital and industrial resources to increase cryptocurrency mining revenues.
Binance Launches $500 Million Fund to Help Bitcoin Miners
The announcement comes at a time when major Bitcoin miners are struggling with the bear market. In recent months, several miners have started to cut production or have gone out of business.
Due to market conditions, Canadian Bitcoin miner Bitfarms sold $62 million of its bitcoin in June to pay off debt and maintain its liquidity.
Several companies are struggling to keep their heads above water. One of these is Compute North, which recently filed for bankruptcy in the US bankruptcy court.
Binance’s announcement follows Bitmain, which has created a $250 million fund to buy struggling mining companies.
According to the official announcement, companies must provide a guarantee, be it physical or digital assets, for the loan, for a period of 18 to 24 months. Interest rates range from 5% to 10%.
“As one of the world’s leading cryptocurrency 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 loan project to support cryptocurrency miners and digital infrastructure providers.
Binance’s decision also comes at a time when the mining industry faces revenue challenges: A count north declared bankruptcy last month Iris Energy has raised US$100 million through the sale of shares, Compass mining discontinued operations in Georgia and the poolinone of the largest Bitcoin mining pools, has stopped withdrawing.
This is not the first time Binance has supported cryptocurrency miners. Last month, the exchange announced that miners could mine Ethereum PoW (ETHW) in its mining pool.
ETHW is the product of the hard fork following Ethereum’s transition to a proof-of-stake consensus mechanism in September.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
