Institutional crypto lending protocol Maple Finance teamed up with Icebreaker Finance to launch a $300 million lending pool to finance accredited bitcoin mining firms across North America, Canada, and Australia.
The lending pool launched on Sept. 20 and targeted mid-sized bitcoin mining and infrastructure providers. The loans will be repayable over a 12-18 months period at an interest up to 20%.
According to Maple Finance, borrowers will be required to provide real-world assets, like mining rigs, power transformers, and other infrastructure assets, as collateral.
Maple Finance CEO Sidney Powell expressed optimism that the liquidity pool will provide a viable opportunity for miners to increase their liquidity amidst the declining market conditions.
Miners play an essential role in growing the crypto ecosystem and local economies, and we are proud to extend a new financing vehicle to direct capital where it is needed the most.”
The institutional liquidity provider has issued up to $1.8 billion in loans to the accredited institution since May 2021.
Bitcoin miners in the crypto winter
Bitcoin miners are perhaps among the worst hit by the crypto winter. Many miners have opted to sell off their BTC holdings and equipment to finance their growing debt.
A recent study by CoinDesk revealed that accreditated crypto miners across North America are faced with a debt burden of up to $4 billion. Many of these were incurred in their quest to construct bigger facilities during the peak of the bull run.
However, as the value of their mining output declined alongside the price of BTC, many miners are selling off their bitcoin and equipment to repay the loans.
Crypto miner Bitfarm sold 1,500 of its bitcoin holding to raise $34 million to pay up its loan from Galaxy Digital, back in June. The firm also turned to New York Digital Investment Group (NYDIG) to raise another $37 million by pledging some of its mining equipment.
NYDIG has been instrumental in offering loans that help sustain bitcoin mining operations. Argo Blockchain moved to borrow an additional $70 million to expand its mining rig in Texas. At the moment, Argo owes NYDIG a cumulative of $97.2 million.
The post Maple Finance launches $300M lending pool for Bitcoin mining firms appeared first on CryptoSlate.
