Binance Launches $500 Million BTC Mining Initiative As Difficulty Metric Rises
Loans totaling $500 million will be provided by Binance Pool to the bitcoin mining sector. Additionally, it intends to introduce cloud mining products and is seeking cloud mining suppliers.
The largest cryptocurrency exchange BNB has announced $500 million in funding for a scheme to boost bitcoin mining through miner lending. According to the Oct. 14 release, Binance Pool will help the mining sector and was also searching for cloud mining vendors.
Binance Pool believes that the funds would help keep the ecosystem healthy. The announcement reads:
“As one of the world’s leading crypto mining pools, Binance Pool has a responsibility to help maintain a healthy digital asset ecosystem. In light of current market conditions, Binance Pool is launching a $500million lending project to support crypto miners and digital infrastructure providers.”
The project’s main objective is to offer secure debt financing services to reputable bitcoin (BTC) mining and infrastructure companies worldwide, both publicly traded and privately held. Amounts would be given to qualified borrowers for a length of 18 to 24 months, with interest rates ranging from 5% to 10%.
Regarding cloud mining suppliers, BNB is aiming to introduce cloud mining-related products. As the cloud mining hash power will be directly purchased from BTC mining and digital infrastructure providers, BNB is looking for cloud mining suppliers to partner with it.
More companies are entering the bitcoin mining sector – Binance
Prominent businesses and even state-owned organizations are starting to use bitcoin mining. Jaan Tallinn, a co-founder of Skype, invested in the crypto hardware development company Fabric Systems through his company, Metaplanet. The latter seeks to create bitcoin mining equipment that uses little energy.
The cryptocurrency software and services provider Luxor now enables traders to wager on upcoming mining profits. Hashprice, the commodity being exchanged, is derived from hashrate income. Another new mining-related investment opportunity has been introduced by Grayscale.
An international cryptocurrency mining firm is currently receiving power from Argentina’s state-owned energy provider, YPF. It is a trial with sustainability as its main objective.
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