Binance Pool launches $500M lending project to support bitcoin miners
Binance Pool has unveiled a $500M fund to offer lending support for the beleaguered crypto mining industry, according to crypto exchange Binance's recent blog post.
Its efforts to bolster the mining industry come as the recent slump in crypto prices as well as ethereum's (ETH-USD) transition to the Proof-of-Stake consensus mechanism from the Proof-of-Work model negatively impact miners.
As such, Binance Pool will provide secure debt financing services to both public and private bitcoin (BTC-USD) mining and digital asset infrastructure firms. Eligible companies must pledge security in the form of either physical or digital assets to get the loan, the duration of which will be 18-24 months.
Crypto miners: Marathon Digital (NASDAQ:MARA), Riot Blockchain (NASDAQ:RIOT), HIVE Blockchain (NASDAQ:HIVE), Hut 8 Mining (NASDAQ:HUT), Bitfarms (NASDAQ:BITF), Bit Digital (NASDAQ:BTBT), CleanSpark (NASDAQ:CLSK), Greenidge Generation (NASDAQ:GREE), Iris Energy (NASDAQ:IREN) and Core Scientific (NASDAQ:CORZ).
A big chunk of those miners saw bitcoin (BTC-USD) production pull back in September as an increase in the network hashrate and difficulty screamed trouble for profit margins. And with bitcoin down 66% in the past year, most of the companies' stocks sold off even more, as seen in this chart.
Earlier this month, (Oct. 7) Binance's BNB token hit by $570M hack.