Binance’s blog post reads: “This project was designed to provide secure debt financing services to both public and private blue-chip bitcoin (BTC) mining and digital asset infrastructure companies globally.”
Binance announced its plans to support Bitcoin miners by unveiling a $500M lending pool project.
The news came a few days after Binance launched a mining pool for ETHW, Ethereum’s PoW fork token.
According to Binance, its Lending Pool project will provide loans at an interest rate of 5-10% for an 18 to 24-month term. Binance will accept “satisfactory” mining equipment or crypto assets as collateral for these loans.
In the same announcement, Binance voiced its intention to launch cloud mining products. The firm claimed it will purchase mining hash power from Bitcoin mining providers. Binance is currently looking for cloud mining providers that will collaborate with it on this venture.
Bitcoin mining difficulty recently hit its all-time high of 36.51T. The spike in the mining difficulty has created more problems for the crypto mining industry which is strained by the bearish crypto market.
It is worth noting that Binance is not the only company offering its support to the crypto mining industry. In September, Maple Finance launched a $300M lending pool to help mining firms.
