Launched on Sep 20, the new lending pool targets medium-sized Bitcoin miners and providers. Loans will have a 12- to 18-month tenor and interest rates up to 20%. According to Maple Finance, borrowers will be required to provide real-world assets, such as mining rigs, power transformers, and other infrastructure assets as collateral.
Maple Finance has so far granted loans of up to $1.8 billion to accredited institutions since May 2021. Maple Finance CEO Sidney Powell believes its new lending pool will help miners to extend their liquidity amidst the declining market situations.
“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”, he said.
In fact, Bitcoin miners are probably among those most affected by the crypto winter. Many miners have had to sell off BTC and their equipment to cover the debt. North American crypto miners are facing a debt burden of up to $4 billion due to the mining performance and Bitcoin price continuously dropping.
Miners currently still have to struggle with many difficulties as Bitcoin plunged to $19,000. A lot of Bitcoin miners continue to dump BTC at this time to prevent risks.
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