Maple Finance, an institutional crypto lending protocol, has partnered with Icebreaker Finance to launch a $300 million lending pool to lend to accredited Bitcoin mining companies in North America, Canada and Australia.
The lending pool was launched on September 20th and was aimed at mid-sized Bitcoin mining and infrastructure providers. Loans are repaid for 12-18 months with interest up to 20%.
According to Maple Finance, borrowers must provide real-world assets such as mining rigs, power transformers, and other infrastructure assets as collateral.
Maple Finance CEO Sidney Powell expressed optimism that liquidity pools provide a viable opportunity for miners to increase liquidity amid deteriorating market conditions.
Miners play an integral role in the growth of the crypto ecosystem and local economies, and we are proud to expand our new funding avenue to direct capital where it is needed most. ”
Institutional liquidity providers have issued up to $1.8 billion in loans to accredited institutions since May 2021.
crypto winter bitcoin miner
Bitcoin miners are probably one of the hardest hit companies in the cryptocurrency winter. Many miners have chosen to sell their BTC holdings and equipment to finance their growing debt.
Recent study Accredited cryptocurrency miners in North America face debt burdens of up to $4 billion, according to CoinDesk. Many of these occurred during the peak of the bull market to build larger facilities.
However, as the value of mining fell along with the price of BTC, many miners are selling their bitcoin and equipment to pay off their loans.
Cryptocurrency miner Bitfarm sold its 1,500 bitcoin holdings in June, raising $34 million to pay off a loan from Galaxy Digital. The company also asked New York Digital Investment Group (NYDIG) to raise an additional $37 million for him by pledging some of its mining equipment.
NYDIG has been instrumental in providing loans to help sustain bitcoin mining operations. Argo Blockchain has decided to borrow another $70 million to expand its mining rig in Texas. Argo currently owes her NYDIG a cumulative $97.2 million.