Binance Pool, the crypto mining services division of crypto exchange Binance, aims to help Bitcoin miners with $500 million in loans to help them survive the crypto winter.
The ongoing bear market has severely affected nearly all industry players, especially miners. With rising fuel and electricity prices and a slump in the cryptocurrency market, this cohort has been hit hardest, with many miners shutting down machines to negligible profitability.
To help miners and in turn save the broader cryptocurrency market from further harm, Binance Pool, one of the world’s largest crypto mining pools, has launched a $500 million loan to support Bitcoin miners. It has decided to offer it, the company said 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 will launch a $500 million financing project to support cryptocurrency miners and digital infrastructure providers.”
The report details that both “blue chip public and private Bitcoin (BTC) mining and digital asset infrastructure companies around the world” will be able to secure debt and finance their services through the initiative. increase.
Loan terms include “18 to 24 months term”, interest rates ranging from 5% to 10%, and “providing physical or digital asset security satisfactory to Binance”.
Besides Binance, other major industry players have also taken steps to support struggling cryptocurrency miners. One is the plan of Jihan Wu, the founder of crypto mining his rig his maker Bitmain. setting A $250 million fund to purchase distressed assets from mining companies.
“There is an opportunity in every cycle,” Bitdeer CEO Matt Kong said. It is suitable.”
Bitcoin Hashrate Reaches New ATH
Bitcoin network total hashrate on Tuesday set a new all-time highsuggesting that miners are becoming more optimistic about Bitcoin’s price as they come online despite consistently low BTC prices.
Bitcoin hashrate is a measure of the amount of computing power dedicated to mining BTC and protecting the network. Rising hashrate means more mining machines are coming online and may indicate growing optimism among miners about the future Bitcoin price.
According to data from Blockchain.com, Bitcoin’s total hashrate hit 241.88 Ehash/s last week, up significantly from the year’s low of 168.2 Ehash/s in early January. Looking at the data on a 7-day moving average basis, it has reached all-time highs. This is a commonly used method for smoothing short-term fluctuations in the hashrate of the Bitcoin network.