Binance, the world’s largest cryptocurrency exchange by trading volume, is launching a $500 million lending project to support Bitcoin (BTC) mining and infrastructure providers, the company’s mining service Binance Pool, announced via a blog post on Friday.
“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,” the announcement reads.
Binance noted that the newly-launched project is the first of its kind for Binance Pool.
Binance Launches $500 Million Fund for Bitcoin Miners
As part of the initiative, Binance Pool will provide loans for both private and public-listed Bitcoin mining companies.
To access the loans, the miners will need to pledge security in the form of tangible or digital assets with a duration of 18 to 24 months. The loan also includes an interest rate ranging from 5% to 10%.
Aside from launching the $500 million project, Binance Pool also said it is looking to roll out 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.”
Crypto Miners Struggle Amid Bear Market
The latest announcement comes at a time when top Bitcoin miners are struggling amidst the current bear market. Due to the market conditions, In June, Canadian Bitcoin mining company Bitfarms sold $62 million worth of its BTC to reduce its debts and maintain liquidity.
Shortly after, a public-listed Bitcoin mining company, Core Scientific sold 7,202 bitcoins (approx. $167M) to cover operational costs and pay debts.
Compute North, the largest operator of crypto-mining data centers, recently filed for Chapter 11 bankruptcy in Texas.
Meanwhile, the latest initiative by Binance may come as a huge relief to these struggling miners who can now have access to loans that could help them stay afloat during the current bear market.
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