Binance Pool, the crypto mining services arm of cryptocurrency exchange Binance, aims to help Bitcoin miners weather the crypto winter with a $500 million loan.
The ongoing bear market has had a profound impact on almost all industry participants, particularly miners. Amid rising fuel and electricity prices and the crypto market downturn, this cohort has been hit the hardest, with many miners proceeding to shut down their machines as profitability becomes negligible.
In a bid to help miners and in turn help the broader crypto market from major damage, Binance Pool, one of the largest crypto mining pools in the world, has decided to offer a $500 million loan to support to Bitcoin miners, the company said on a Friday. blog post.
“Binance Pool has a responsibility to help maintain a healthy digital asset ecosystem,” the post read. “In light of current market conditions, Binance Pool is launching a $500 million loan project to support crypto miners and digital infrastructure providers.”
The report details that “world-class public and private bitcoin (BTC) mining and digital asset infrastructure companies” could guarantee debt through this initiative and finance their services.
Some terms of the loans include “a term of 18 to 24 months”, interest rates ranging from 5% to 10, and “offer security, whether physical or digital, satisfactory to Binance.”
Apart from Binance, other major industry players have also taken steps to support struggling crypto miners. For one, Jihan Wu, the founder of crypto mining platform maker Bitmain, plans to set up a $250 million fund to buy distressed assets from mining companies.
“There are opportunities in every cycle,” said Matt Kong, CEO of Bitdeer. “If you can time the market and enter at the bottom, exit at the top, then you will make money. It works especially well for mining.”
Bitcoin Hashrate hits a new ATH
On Tuesday, the total Bitcoin network hash rate reached a new all-time high, suggesting that miners are now more bullish on the price of bitcoin as they have connected to the internet despite consistently rising BTC prices. low.
Bitcoin hashrate is a measure of the amount of computing power that goes into mining BTC and securing the network. A rising hashrate means more miners are coming online, which could indicate more optimism among miners about bitcoin prices going forward.
Data from Blockchain.com shows that Bitcoin’s total hashrate reached 241.88 Ehash/s last week, a significant increase from this year’s low of 168.2 Ehash/s in early January. The all-time high was reached by looking at the data on a 7-day moving average basis, an often-used way of smoothing out short-term fluctuations in the hash rate on the Bitcoin network.