Maple Finance wrote on their Twitter page: “Today, @IcebreakerDeFi joins Maple and opens a $300M capacity pool to provide secured debt financing to blue-chip Bitcoin mining and digital asset infrastructure companies.”
The generation of capital has been difficult for miners this year. This is due to the constant fluctuation in Bitcoin prices.
In light of this development, DeFi lending protocol, Maple Finance has announced its provision of $300 million worth of secured debt financing.
The CEO and co-founder of Maple Finance, Sidney Powell, said,
"Recent market headwinds have caused lenders to pull back, while traditional financing vehicles have been slower to engage this sector. Miners play an essential role in growing the crypto ecosystem and local economies, and we are proud to extend a new financing vehicle to direct capital where it is needed the most."
This provision is for private and public Bitcoin mining firms. It stated that this would be done with the help of its delegate, Icebreaker Finance.
To help Bitcoin miners who have trouble raising capital, Maple Finance launched its first fully collateralized, industry-specific lending pool, which offers about a 20% interest rate.
The company announced this in a tweet, saying,
“Today, @IcebreakerDeFi joins Maple and opens a $300M capacity pool to provide secured debt financing to blue-chip Bitcoin mining and digital asset infrastructure companies.”
Maple Finance states that qualified firms who have met the power strategies management and treasury management standards across North America and Australia are eligible to apply for the funding.
The lending protocol also seeks to provide risk-adjusted returns in low percentages (up to 13% per annum) to capital allocators and investors. Hence, the pool will be managed by the Australian-based Icebreaker Finance.
According to them, the pool is open to accredited investors who have made large income or net worth qualifications within a jurisdiction. In the US, for example, it means earning an annual pre-tax income of about $200,000 or a liquid net worth of over $1 million.
Maple Finance noted that the underlying loans in the lending pool would last 12 to 18 months. This would be at an interest rate of up to 20%. The loan will be secured by using the borrower's intellectual and physical assets, which could also include Bitcoin mining rigs.