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Binance Pool to support BTC miners with $500m loan program

Published

2 years ago

October 14, 2022

Binance pool has unveiled a $500 million project to support BTC mining and infrastructure providers. The unveiling of this lending project stems from the need to augment the devastating effect of the prolonged bear market on miners. This “secure debt financing service” is made available to both public and private miners.

Stating the mode of lending, eligible borrowers will be necessitated to agree to some terms and conditions. As stated in the released publication, these terms and conditions include an 18 to 24-month term loan servicing period, a 5% to 10% interest rate, and the offering of collateral, either physical or digital assets.

In addition to the lending initiative, the publication also pointed out the intention of Binance pool to launch cloud mining products. Explaining this, Binance wrote:

“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.”

Binance coming to the aid of miners

The crypto winter has posed problems for the entire crypto industry. Bitcoin mining hasn’t been as lucrative as it used to following the plummeting of BTC from its all-time high.

Statistics have shown the continuous fall of Bitcoin’s mining profitability as the profit reduces just as Bitcoin reduces in value. With BTC currently trading at $19,620, the reward for a day of mining per THash/s is $0.077.

The low profit generated from BTC mining, coupled with the increase in energy costs, has made the mining process frustrating and difficult for miners. The coming of Binance into the BTC mining space could help alleviate the challenges faced by bitcoin miners and help navigate through the bear market.

To apply for a loan from Binance, click this.