Binance Announces $500 Million Funding for Bitcoin Mining
Binance Pool, cryptocurrency exchange Binance’s crypto mining services arm, aims to help bitcoin miners weather the crypto winter with a $500 million loan. The ongoing bear market had a profound impact on almost all industry participants, with rising fuel and electricity prices and the crypto market downturn, this cohort was hit hardest as many miners shut down their machines as profitability became negligible.
Further damage, Binance Pool, one of the world’s largest crypto mining pools, has decided to offer a $500 million loan to support bitcoin miners, the company said in a blog post on Friday.
“Binance Pool has a responsibility to help maintain a healthy digital asset ecosystem,” the post reads. “Given the current market conditions, Binance Pool is launching a $500 million loan project to support crypto miners and digital infrastructure providers.
The report stated that “both the world’s leading public and private Bitcoin (BTC) mining and digital asset infrastructure companies” could use this initiative to guarantee debt and fund their services. Some credit terms include “a term of 18 to 24 months,” interest rates of 5% to 10%, and “offer security, whether physical or digital, that Binance is satisfied with.”
Besides Binance, other major industry players have also taken steps to support the struggling crypto miners. For one, Jihan Wu, the founder of crypto mining platform maker Bitmain, plans to set up a $250 million fund to buy distressed mining company assets.
There is opportunity in every cycle,” Bitdeer CEO Matt Kong reportedly said. “If you can time the market and get in at the bottom and get out at the top, then you’re going to make money. Is working. especially good for mining.”
Bitcoin Hashrate Hits New ATH
On Tuesday, the total hash rate of the bitcoin network hit a new all-time high, suggesting that miners are more optimistic about the bitcoin price now that they have connected to the internet despite rising prices. The Bitcoin hash rate is a measure of the amount of computing power that goes into mining BTC and securing the network.
A rising hash rate means more miners are coming online, which could indicate increased optimism among miners that bitcoin prices will rise by Blockchain.com data shows the total bitcoin hash rate has reached 241.
88 Ehash/s last week, a notable increase from this year’s low of 168.2 Ehash/s in early January. The all-time high was achieved by looking at the data based on a 7-day moving average, a commonly used method to smooth out short-term fluctuations in the Bitcoin network’s hash rate.