Binance offers the cryptocurrency mining industry with loans worth $500 million
October 17, 2022 5:58 AM
Binance, the largest cryptocurrency exchange, has launched a lending program through its mining pool to help cryptocurrency miners. This week, the cryptocurrency exchange Binance Pool announced that it would be releasing cloud mining products, which it presented alongside the initiative.
The largest cryptocurrency trading platform by daily volume, Binance, has announced it will provide funding to businesses that mine cryptocurrency. Recently, the platform's mining pool announced the lending project.
As part of a larger effort to strengthen the mining industry, the program will aid bitcoin mining and infrastructure providers. The exchange elaborated, calling Binance Pool "one of the world's leading crypto mining pools" with "a responsibility to help maintain a healthy digital asset ecosystem."
"Given the state of the market, Binance Pool has decided to launch a $500 million lending project to aid cryptocurrency miners and providers of digital infrastructure."
This is Binance Pool's first initiative of its kind. The project is part of the global crypto company's strategy to provide safe debt financing services to blue-chip bitcoin (BTC) mining and digital asset infrastructure companies both publicly and privately.
Borrowers would have to agree to terms and conditions in order to receive the loans, such as a term of 18 to 24 months and interest rates between 5% and 10%. Binance also expects miners to offer security in the form of both physical and digital assets.
Additional details about Binance Pool's plans to introduce cloud mining products were also revealed in the announcement. Binance Pool is seeking cloud mining vendors to collaborate with it, as the cloud mining hash power will be purchased directly from bitcoin mining and digital infrastructure providers.
Among the top mining pools, Binance Pool ranks alongside Foundry USA, Antpool, F2pool, and Viabtc in terms of hashrate share. Mining Bitcoin, the largest cryptocurrency by market cap, became more difficult than ever on October 10 after a drop on September 27—the first in two months.