Photo by Vadim Artyukhin on Unsplash

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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