Maple Finance, a decentralized finance (DeFi) company, cryptocurrency medium-sized enterprises in North America and Australia as the winter’s pressure on the mining industry continues. bitcoin (BTC) is launching a $300 million credit pool for miners.
Raising capital has been difficult for Bitcoin miners this year as the price of Bitcoin has plummeted and energy prices have skyrocketed.
As traditional sources of capital dry up, new financiers like Maple are trying to fill the gap.
In July, Antalpha, a partner of the largest mining equipment manufacturer Bitmain, announced new debt instruments for Bitcoin miners.
Meanwhile, debt restructurings and takeovers had begun among miners struggling to survive the bear market.
Maple Finance CEO Talks About Loans To Bitcoin Miners
Sidney Powell, CEO and co-founder of Maple, made the following statements on the subject in his press release:
“While the recent market negativities have caused lenders to withdraw themselves, traditional financing instruments have also been slower to enter this sector.
Miners play an important role in the growth of the cryptocurrency ecosystem and local economies, and we are proud to introduce a new financing tool to direct capital where it is needed most.”
The loans will have a maturity of 12 to 18 months and will have interest rates of around 15%-20%, which is the upper limit for the mining industry but not unusual.
According to the press release, the pool will be managed by Australia-based Icebreaker Finance.
In the statement, it was stated that the pool aims to provide loans to public and private companies in the USA with “effective treasury management and prudent power strategies”.
Maple Finance holds 50% of the DeFi loan market as measured by total loans outstanding on corporate DeFi loan platforms. Since the launch of the first pool in May 2021, liquidity pools on the Maple platform have loaned close to $1.8 billion, according to the statement.
Maple plans to open more loan pools for the growing mining industry and plans to expand its loan services to fintech companies.
*Not investment advice.
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