Binance launches $500M lending project to support crypto miners
Binance Pool, a mining subsidiary of Binance, launched a $500 million lending project to support the crypto mining industry. It will provide loans to private blue-chip Bitcoin (BTC) crypto miners.
According to the official blog post from Oct. 14, the Binance Pool will provide access to a $500 million loan fund on several conditions, which include an 18-to-24-month term, 5% to 10% interest rates, and some physical or digital assets as a security. The company will look at a wide range of metrics, including current performance, mining power and security quantity, to define the borrower's creditworthiness.
Binance Pool will also launch cloud mining products, directly purchasing the cloud mining hash power from Bitcoin mining and digital infrastructure providers.
Speaking to Cointelegraph, a Binance spokesperson clarified the criteria for defining a potential borrower as a “blue-chip”:
“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 company did not specify the maximum amount of a single loan, referring to the specifics of each applicant’s situation.
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Binance continues its expansion strategy even in the bear market. In September, it registered with New Zealand’s Ministry of Business, Innovation and Employment and opened local offices in the country.
As October began, the exchange opened up two offices in Brazil, doubling the size of its local team since Changpeng “CZ” Zhao’s visit to the country last Spring. Reportedly the company is still backing Tesla CEO Elon Musk’s $44 billion takeover bid of social media platform Twitter.