Binance Pool has launched a $500 million lending project especially to support the ailing crypto mining industry. It will provide access to a $500 million loan fund on several conditions, including an 18 to 24-month term, 5% to 10% interest rates, and some physical or digital assets as a security.
Binance Pool will provide loans to private blue-chip Bitcoin crypto miners. But it will look at a wide range of metrics, such as current performance, mining power, and security quantity to define the borrower’s creditworthiness. Moreover, the platform will launch cloud mining products to directly purchase the cloud mining hash power from Bitcoin mining and digital infrastructure providers.
A spokesperson for Binance highlighted the criteria for defining a potential borrower as a blue chip. The applicant should 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. It should be noted that Binance has not specified the maximum amount of a single loan.
Furthermore, it will provide secure debt financing services to both public and private Bitcoin mining and digital asset infrastructure firms.