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According to Binance, the announcement of the Binance Pool will offer safe debt financing services to both public and private blue-chip Bitcoin mining businesses.
Binance, the largest cryptocurrency exchange in the world, has initiated a lending facility for companies that operate digital mines. The crypto bear run has had a bad impact on several crypto miner firms, consequently pushing crypto exchange giants to invest in them and support their operations. Binance Pool has introduced a $500 million lending project for private and public miners.
The miners are required to vow protection of the real or virtual assets for the loan, which can be leveraged for around 2 years. Moreover, Binance Pool quite recently established a mining pool for ETHW, the branched rendition of the Ethereum blockchain that maintains its initial proof-of-work (PoW) support.
The exchange’s five hundred million projects will support cryptocurrency companies in need of funds in the unfaithful bear market. The loan period is set at 18 to 24 months with a pre-decided interest rate. The rate ranges from as low as 5% to as high as 10%. Several corporations that welcome the loan should offer Binance sufficient safety as tangible or virtual assets.
According to Binance, the announcement of the Binance Pool is all set to offer safe debt financing services to both public and private blue-chip Bitcoin (BTC) mining businesses all around the world. But that is not all. the firm is also raising several cloud mining solutions that will back the more general Bitcoin mining industry and deliver more hash power to facilitate an effective mining environment. The exchange claimed that the cloud mining hash power can be easily attained from bitcoin mining and digital infrastructure providers.
The company is currently seeking cloud mining firms to participate and back the inauguration of cryptocurrency products.
However, Binance is not the first firm to offer help to the crippling crypto mining industry. Jihan Wu, the founder of crypto mining company Bitmain has also introduced a $250 Million fund to buy distressed tokens from mining companies.
The decline in the crypto industry and the already scheduled transformation from Ethereum to proof-of-stake (PoS) has trashed the ambitions of several mining firms. Recently in September, crypto miner Compute North registered for bankruptcy with $500 Million in unpaid debt to be paid to two hundred creditors. Other enterprises like Riot Blockchain (RIOT) and Marathon Digital Holdings (MARA) are down by 70% and 60 % respectively.