Updated on January 26, 2023 8:37 AM
Due to the impact the crypto winter is having on the businesses that staff the virtual mines, cryptocurrency exchange Binance has launched a loan programme for bitcoin (BTC) miners.
A $500 million financing operation for both public and private miners has been launched by Binance Pool. The miners will be required to provide security for the loan, which will last between 18 and 24 months, in the form of tangible or digital assets.
A mining pool for ETHW, the Ethereum split that keeps the blockchain's original proof-of-work (PoW) foundations, has just been made available by Binance Pool. The creator of the cryptocurrency mining rig manufacturer Bitmain, Jihan Wu, is also establishing a $250 million fund to buy distressed assets from mining companies, so Binance is not the only company aiming to help the ailing crypto mining sector.
To provide miners with working money, Decentralized Finance (DeFi) platform Maple Finance has also set up a loan pool with a 20% interest rate. In order to assist investors in benefiting from the cheap costs of bitcoin mining facilities, the cryptocurrency asset management company Grayscale has also established an investment vehicle. It's important to note that Grayscale is a division of the Digital Currency Group (DCG)
Miners have been severely impacted by the collapse of the cryptocurrency market and the anticipated switchover of Ethereum to proof-of-stake (PoS). Crypto miner Compute North filed into bankruptcy in late September, owing at least 200 creditors $500 million in unpaid debt. Riot Blockchain, a publicly traded mining business, has lost 70% of its value so far this year, while Marathon Digital Holdings has lost 65%.