Major DeFi lender Maple Finance has launched a $300 million capacity pool for Bitcoin mining companies.
This development came despite a sharp drop in the price of BTC and a reduction in funding for the mining industry.
Maple opens fully collateralized $300 million loan pool
according to a announcement On Tuesday (September 20, 2022), the new fund targets “public and private blue-chip bitcoin mining and digital asset infrastructure companies” based in North America and Australia.
today, @IcebreakerDeFi Join Maple and open a $300 million capacity pool to provide secured debt financing to blue-chip bitcoin mining and digital asset infrastructure companies. pic.twitter.com/ZWyLV2P9hr
— Maple (@maplefinance) September 20, 2022
The pool offers base loans with terms of 12-18 months and interest rates between 15-20%. Australian financial services company Icebreaker Finance will manage and administer the loan through Maple’s platform. Funds will be managed to borrowers based on balance sheet strength, operational efficiency and financial performance.
Additionally, loans will be secured by real-world or digital assets such as mining equipment and power transformers.
Commenting on the latest development, Icebreaker Finance founder and CEO Glyn Jones said:
“Given the volatility of ASIC value, the market is now realizing that non-recourse SPV ASIC-backed financing may not be appropriate. Instead, a more diverse security package is needed. Maple’s out-of-the-box on-chain lending toolkit Allows us to combine lender and borrower incentives with on-chain loan execution terms that more effectively reflect the emerging nature of the industry than we have elsewhere.”
The Financing Dilemma of Bitcoin Miners
The news comes amid turbulent times for bitcoin miners in financing their operations. The crypto bear market has made it difficult for mining companies to obtain loans and repay creditors.
Back in June, Bitcoin miners struggle Repay about $4 billion worth of loans backed by their equipment.as previously reported encrypted potatoBitcoin miner Core Scientific sold over 7,000 BTC at an average price of $23,000 per coin in June alone, with 1,959 BTC in the company’s vaults.
company later sign the agreement In partnership with investment firm B. Riley, which will purchase $100 million of Core Scientific common stock over two years.
Sidney Powell, co-founder and CEO of Maple Finance, said:
“Recent market headwinds have led to an exit of lenders and traditional financing vehicles have been slower to enter the industry. Miners play a vital role in growing the crypto ecosystem and local economy, and we are proud to expand a new financing vehicle , directing funds to where they are most needed.”
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