Cryptocurrency exchange Binance has set out to support crypto miners through a lending program established by its mining pool. Introducing the initiative this week, the coin trading platform also revealed that Binance Pool intends to launch cloud mining products.
Leading Exchange Binance Seeks to Help Bitcoin Miners in Difficult Times for Cryptocurrency Business
Binance, the world’s leading cryptocurrency exchange by daily transaction volume, has announced a plan to extend financial support to companies involved in cryptocurrency mining. The loan project was recently submitted by the platform’s mining pool.
The program will help bitcoin mining and infrastructure providers as part of efforts to boost the mining industry. “As one of the world’s leading crypto mining pools, Binance Pool has a responsibility to help maintain a healthy digital asset ecosystem,” the exchange said, explaining:
In light of current market conditions, Binance Pool is launching a $500 million loan project to support crypto miners and digital infrastructure providers.
This is the first initiative of its kind from Binance Pool. With the project, the global crypto company aims to offer secure debt financing services to leading public and private bitcoin (BTC) mining and digital asset infrastructure companies around the world.
To access the loans, borrowers would have to agree to a set of terms and conditions, such as a term of 18 to 24 months and interest rates ranging between 5% and 10%. Miners will also need to provide satisfactory security for Binance, whether physical or in the form of digital assets.
In the announcement, the exchange further revealed that Binance Pool intends to launch cloud mining products. Since cloud mining hash power will be purchased directly from bitcoin mining and digital infrastructure providers, Binance Pool is looking for cloud mining providers to work with it, the trading platform explained.
Binance Pool is among the leading entities in the mining sector by percentage of hashrate, along with Foundry USA, Antpool, F2pool and Viabtc. After a drop on September 27, the first in two consecutive months, Bitcoin mining difficulty spiked to an all-time high on October 10, as reported by Bitcoin.com News, making it harder than ever to mint. BTC, the cryptocurrency with the largest market capitalization.
Do you think cryptocurrency miners will benefit from the Binance Pool loan project? Share your expectations in the comments section below.
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