Binance Announces $500 Million Lending Lifeline for Struggling Crypto Miners

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With many crypto industry firms struggling through the bear market, the world’s largest digital asset exchange has offered to lend a hand.

Binance Pool has announced a $500 million lending project to help support struggling crypto miners, helping keep the ecosystem afloat.

According to Binance’s official announcement on Thursday, Binance’s pool will support both crypto miners and “digital infrastructure providers.”
Loans to such firms will be available for an 18 to a 24-month term, with interest rates ranging from 5% to 10%.
Binance also plans to work with cloud mining vendors to launch cloud mining products. Cloud mining is when third parties rent hash power from a mining machine operated by another’s facility.
In the case of Binance Pool, it will directly purchase hash power from the miners and infrastructure providers it works with.
Jihan Wu – founder of the ASIC development company Bitmain – launched a similar fund in late September for $250 million. It will purchase assets from distressed crypto miners.
The vast majority of “crypto” mining surrounds Bitcoin, which fell substantially in value in Q2. Having drifted around $19,000 per coin for months, less efficient mining firms are struggling to stay afloat on such tight profits.
Contributing to that difficulty is Bitcoin’s continually rising hash rate, making it more competitive to mine a block over time.
In September, the Bitcoin mining firm North Compute filed for bankruptcy, while its CEO resigned. Even large public miners like Core Scientific were forced into selling the vast majority of their holdings.
On the other hand, Ark Invest suggested last week that Miner capitulation may already be complete.

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