Cryptocurrency exchange Binance has set out to support crypto miners through a lending program established by its mining pool. Presenting the initiative this week, the coin trading platform also unveiled that Binance Pool intends to launch cloud mining products.
Leading Exchange Binance Looking to Help Bitcoin Miners in Difficult Times for Crypto Business
Binance, the world’s leading crypto exchange by daily trading volume, has announced a plan to extend financial support to companies involved in the extraction of cryptocurrencies. The lending project was recently unveiled by the platform’s mining pool.
The program will help bitcoin mining and infrastructure providers as part of efforts to bolster 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, elaborating:
In light of current market conditions, Binance Pool is launching a $500-million lending project to support crypto miners and digital infrastructure providers.
This is Binance Pool’s first such initiative. With the project, the global crypto company aims to offer secure debt financing services to both public and private blue-chip bitcoin (BTC) mining and digital asset infrastructure companies around the world.
To gain access to the loans, borrowers would have to accept a set of terms and conditions like an 18 to 24-month term and interest rates ranging between 5% and 10%. Miners will also be required to provide security satisfactory to Binance, either physical or in the form of digital assets.
In the announcement, the exchange further revealed that Binance Pool intends to launch cloud mining products. As the cloud mining hash power will be directly purchased from bitcoin mining and digital infrastructure providers, Binance Pool is looking for cloud mining vendors to work with it, the trading platform explained.
Binance Pool is among the leading entities in the mining sector by share of hashrate, along with Foundry USA, Antpool, F2pool, and Viabtc. After a drop on Sept. 27, the first in two consecutive months, Bitcoin’s mining difficulty spiked to an all-time high on Oct. 10, as Bitcoin.com News reported, making it harder than ever to mint BTC, the crypto with the largest market cap.