Binance Pool to support Bitcoin (BTC) miners.
Binance, one of the largest crypto exchanges in terms of daily trading volumes, mining subsidiary Binance Pool has launched a $500 million lending project to support Bitcoin (BTC) mining.
According to the blog post shared on October 14th, the lending project was launched “in light of current market conditions” with the aim to “help maintain a healthy digital asset ecosystem.”
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Binance’s mining subsidiary is set to provide loans to public and private blue-chip Bitcoin crypto miners and “digital asset infrastructure companies.”
Based on the blog post, before receiving loans, crypto miners will have to agree to several conditions, including but not limited to 18 to 24-month terms and interest rates from 5% to 10%. Moreover, the miners will have to provide security satisfactory to Binance in the form of “physical or digital assets.”
Before providing loans, Binance will evaluate the borrower’s creditworthiness by looking into mining performance, power, and security quantity. When asked about particular requirements for crypto miners to be eligible for a loan, Binance’s spokesperson noted:
One of the requirements is that the applicant must be classified as a Binance VIP user and connect at least 500 PH/s to the Binance Pool for a minimum of 24 months after the loan is issued.
Binance didn’t specify the maximum amount a single Bitcoin miner can receive, noting that each applicant's situation may be different.
In its blog post, Binance also revealed its plans to launch cloud mining products. The company noted that cloud mining hash power would be purchased directly from “Bitcoin mining and digital infrastructure providers.”
In other news, Binance has recently burned around 2,065,152 BNB tokens worth around $548 million as a part of its quarterly BNB auto-burning initiative.
