Binance offers ailing bitcoin miners $500 million in loans

The current market situation is not great. Investors are seeing their portfolios fall in value and bitcoin (BTC) miners are also having a hard time. The major crypto exchange Binance is now offering them a helping hand. It launches namely the possibility to borrow money and thus be able to keep the doors open.

Binance offers bitcoin miners a helping hand

For the bitcoin miners, the situation is extra painful. In many cases they invested millions in advanced centers, but they are now on the gums as energy prices rise and the bitcoin price falls.

Binance is therefore launching a program to help ailing miners. In total, Binance Pool is setting aside $500 million for parties who need it. They can receive money in the form of an 18 to 24 month loan.

Of course, the exchange does not provide the loan just like that. Miners will be required to provide collateral “either physical or digital assets, accepted for Binance,” the announcement said. The interest rates for such a loan are somewhere between 5 and 10%.

Sell ​​Bitcoin miners

The loan could be interesting for BTC miners who simply have no money left to pay the energy bill, or who have a lot of bitcoins in their reserves but do not want to sell them. In this way they can continue their operation in the hope that better times will come.

Yet there are many miners who do sell their bitcoins. That was reported in the bitcoin news yesterday. The reserves of the miners are said to have shrunk so much that they are at the same level as 12 years ago.

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That is not to say that the bitcoin mining industry is in danger, on the contrary. The will to keep growing, even in these times, is still there. This is evident from a recent survey by Arcane Research among listed bitcoin mining companies. They want to grow their computing power by 27 exahashes per second (EH/s) this year.

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