Binance announced the launch of a $500 million lending fund to help Bitcoin miners

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Binancethe world’s largest cryptocurrency exchange, launched a $500 million loan fund to help bitcoin miners after acknowledging “difficult market conditions.”

The Binance project aims to provide funding for Bitcoin mining companies and public and private digital asset infrastructure around the world. In the meantime, Binance Pool plans to launch cloud mining products and is looking for providers.

The bear market had a profound impact on almost all players in the industry, particularly mining companies. Amid rising fuel and electricity prices and the cryptocurrency market downturnthis group has been the most affected, with many miners going bankrupt.

The loan project was launched by Binance Pool, the company’s dedicated services platform for miners as part of its ecosystem that provides technology, capital and industry resources to increase mining profits. cryptocurrency mining.

Binance Launches $500 Million Fund to Help Bitcoin Miners

The announcement comes at a time when top Bitcoin miners are battling the bear market. In recent months, several miners have started to cut production or become insolvent.

Due to market conditions, Canadian Bitcoin miner Bitfarms sold $62 million of its bitcoin in June to pay off debt and maintain its liquidity.

Several companies have struggled to keep their heads above water. One is Compute North, which recently filed for bankruptcy in the US Bankruptcy Court.

Binance’s announcement follows Bitmain, which created a $250 million fund to buy struggling mining companies.

According to him official announcement, companies must offer a guarantee, either physical or digital, for the loan, for a period of 18 to 24 months. Interest rates range between 5% and 10%.

“As one of the world’s leading cryptocurrency mining pools, Binance Pool has a responsibility to help maintain a healthy digital asset ecosystem. In light of current market conditions, Binance Pool is launching a $500 million loan project to support cryptocurrency miners and digital infrastructure providers.”

Binance’s decision also comes at a time when the mining industry is facing revenue challenges: Compute North filed for bankruptcy last month, Iris Energy raised $100 million from the sale of stock, Compass Mining has ended its operations in Georgia and Poolin, one of the largest Bitcoin mining pools, has stopped withdrawals.

This is not the first time that Binance will support cryptocurrency miners. Last month, the exchange announced that miners would be able to mine Ethereum PoW (ETHW) in its mining pool.

ETHW is the product of the hard fork that followed the Ethereum transitioning to a proof-of-stake consensus mechanism in September.

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