Binance starts a $500M lending initiative to help crypto miners.
The loans will be made available to “blue-chip” Bitcoin miners who will be able to back up their bids with physical or digital assets.
Binance Pool, Binance’s mining subsidiary, has launched a $500 million loan program to help the cryptocurrency mining industry. It will make loans to private, high-profile Bitcoin crypto miners.
According to an official blog post published on October 14, the Binance Pool will allow access to a $500 million loan fund subject to many criteria, including an 18-to-24-month duration, 5% to 10% interest rates, and some real or digital assets as collateral. To determine the borrower’s creditworthiness, the corporation will use a variety of measures such as current performance, mining power, and security quantity.
Binance Pool will also offer cloud mining services, purchasing cloud mining hash power directly from Bitcoin mining and digital infrastructure companies.
“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.”
The organization did not state the maximum amount of a single loan, instead pointing to the unique circumstances of each applicant.
Even in a bad market, Binance maintains its expansion strategy. It registered with New Zealand’s Ministry of Business, Innovation, and Employment in September and established local offices throughout the country.
The exchange built two offices in Brazil as October began, more than doubling the size of its local workforce since Changpeng “CZ” Zhao’s visit to the country this Spring. According to reports, the corporation is still supporting Tesla CEO Elon Musk’s $44 billion buyout attempt for Twitter.