Maple Finance and Icebreaker Launch Lending Pool for Bitcoin Miners

Leading lender DeFi Maple Finance has launched a $300 million pool for bitcoin mining companies.

This development comes despite a sharp drop in the price of Bitcoin and a decrease in capital injections into the mining sector.

Maple has opened a fully secured loan pool of $300 million

According to an announcement on Tuesday (September 20, 2022), the new fund will target “public and private bitcoin mining and digital asset infrastructure companies” located in North America and Australia.

The complex offers basic loans for 12-18 months, along with an interest rate of 15-20%. Australian financial firm Icebreaker Finance will manage and manage the loans via the Maple platform. Funding for borrowers will be managed on the basis of balance sheet strength, operational efficiency and financial performance.

In addition, the loans will be secured with either real assets such as mining rigs and power transformers, or digital assets.

Commenting on the latest development, Icebreaker Finance Founder and CEO Glenn Jones said:

“The market is now ripe to realize that non-recourse ASIC-backed financing may be inappropriate due to the volatility of ASIC value. Instead, a more diversified security package is required. Maple’s unfamiliar suite of lending tools enables us to align incentives for lenders and borrowers to implement on-chain loans. on terms that more effectively reflect the evolving nature of the industry than we can anywhere else.”

Funding the misery of bitcoin miners

This news comes amid a turbulent period for bitcoin miners to secure funding for their operations. The crypto bear market has seen miners struggle to secure loans and pay off creditors.

Last June, bitcoin miners were struggling to repay $4 billion in loans backed by their equipment. As I mentioned before encrypted potatoBitcoin miner Core Scientific sold more than 7,000 BTC in June alone, at an average price of $23,000 per coin, leaving the company with 1,959 BTC in its vaults.

The company later entered into an agreement with investment firm B. Riley, which would buy the latter $100 million of Core Scientific common stock over a two-year period.

Maple Finance Co-Founder and CEO, Sidney Powell said:

“Recent market headwinds have pushed lenders back, while traditional financing instruments have been slow to engage the sector. Miners play an important role in growing the cryptocurrency ecosystem and local economies, and we are proud to expand a new financing vehicle to direct capital where it is most needed. mechanism “.

Post-lending pool Maple Finance and Icebreaker Launcher for Bitcoin Miners debuted on CryptoPotato.

Leave a Comment