Binance Pool Unveils $500M Lending Project to Support Bitcoin

Since the bear market Taking a heavy toll on the crypto mining industry, Binance has announced a new lending project.

The development follows Bitmain founder Jihan Wu’s announcement that it would set up a $250 million fund to buy distressed mining company assets.

Wu is currently leading the spin-off of the manufacturer of Bitcoin mining-Rigs, Bitdeer Technologies, which will initially provide $50 million for the work. The company plans to raise the remaining $200 million from outside investors.

Binance supports bitcoin mining industry

Initiated by Binance Pool, the $500 million project aims to provide public and private blue-chipBTC-Provide secure debt financing services to mining and digital asset infrastructure companies around the world.

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“As one of the world’s leading crypto mining pools, Binance Pool has a responsibility to help maintain a healthy digital asset ecosystem. Given the current market conditions, Binance Pool is launching a $500 million lending project to support crypto miners and digital infrastructure providers.”

According to the official Notice, miners must provide collateral in the form of physical or digital assets for the loan for a period of 18 to 24 months. Interest rates range from 5% to 10%. Binance also announced plans to launch cloud mining products and is looking for such providers.

dwindling profits

Amidst a flagging bitcoin price and higher energy costs, miners came under tremendous pressure elevated by over 13% in the two weeks, setting a new high. They have been selling their bitcoin all year to make up for dwindling profits. There have been certain instances where miners tended to sell more than they mined in a month.

Several companies are struggling to stay afloat. One of them is Compute North, which was recently launched filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas.

Mining platforms like Iris Energy sold $100 million in equity to make some money. Kompass Mining, on the other hand, closed its operations in Georgia. Poolin, one of the largest bitcoin mining pools, froze withdrawals in the wake of the protracted bear market.

Companies like CleanSpark and Argo, which borrowed millions for their mining equipment, recorded heavy losses month after month.