Binance Pool Begins a Bitcoin Mining Support Fund
The ongoing crypto winter is shaking the entire industry. The mining arm of the industry has borne a lot of the stress. Above all, miners’ profit has been constantly reducing every month as energy costs bite deeper.
Severe Market Conditions
The hard situation has caused the Binance crypto exchange to begin a lending program. The goal is to provide aid to miners affected by the crypto market crash.
The Binance Pool program for miners is worth $500 million. It is designed to assist both public and private miners.
Miners who require loans will be required to provide securities as collateral. Such securities could be either digital or physical assets to be in Binance’s custody. The provided collateral will have an 18 to 24 months duration.
Note that the Binance Pool recently launched an ETHW mining pool. ETHW is the forked form of Ethereum that continues to maintain the proof-of-work protocol.
But Binance is not the only company looking out for distressed crypto miners. Bitmain founder, Jihan Wu, also said the company is establishing a $250 million aid.
This will go into buying assets from distressed mining companies. Bitmain is a manufacturer of crypto mining rigs.
Maple Finance equally set up a lending program with an interest rate of 20%. The fund will be providing working capital for affected miners. Maple Finance is a decentralized finance platform.
Offering All Possible Aid
The asset management company, Grayscale, equally threw its hat in. The company launched an investment plan to enable investors to have a piece of the action. The company would buy mining infrastructures from distressed miners with funds from investors.
Grayscale is a subsidiary company of Digital Currency Group. That is in turn the parent firm of CoinDesk.
The crypto market decline hit miners a great deal. They were also really affected by Ethereum’s decision to switch to the proof-of-stake protocol.
A crypto mining firm, Compute North, declared bankruptcy in September. It had debt worth $500 million that it owed over 200 different creditors.
Riot Blockchain mining firm which is a public company is trading 70% down YTD. Marathon Digital is also trading down by 65% in the same period.
The crypto market is suffering from the economic fallout of the Federal Reserve’s policies. Stocks have also been up and down throughout the same period. Bonds have had it no better.
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