The crypto winter has taken its toll on companies that operate virtual mines, prompting cryptocurrency exchange Binance to launch a lending facility for bitcoin miners.
Binance Pool has launched a $500 million lending initiative for both private and public miners. The miners will be required to put up collateral in the form of either physical or digital investments for the loan, which will last 18-24 months.
It also has recently established a mining pool for ETHW, a fork of Ethereum that maintains the blockchain's original proof-of-work (PoW) foundation.
The platform isn't the only company looking to help the troubled crypto industry; Jihan Wu, the creator of crypto mining rig manufacturer Bitmain, is also launching a $250 million mining companies' distressed assets that will be purchased by a fund.
Maple Finance, a Decentralized Finance platform, has also established a borrowing pool with a 20% interest rate that can provide cash flow to miners. Grayscale, a crypto asset management firm, has also established an investment vehicle to assist investors in taking benefit of the low prices of bitcoin mining facilities.
Miners have been hit hard by the crypto market drop and Ethereum's scheduled transformation to proof-of-stake (PoS). Compute North, a cryptocurrency miner, filed bankruptcy in late September, owing at least $200 debt holders $500 million.
Riot Blockchain (RIOT), a publicly listed mining firm, is down 70% year to date, while Marathon Digital Holdings (MARA) is down 65%.
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