Binance to offer $500 million worth of loans to the crypto-currency mining industry

Crypto-currency exchange Binance has set out to support crypto-currency miners through a loan program established by its mining pool. In introducing the initiative this week, the currency exchange also revealed that Binance Pool intends to launch cloud mining products.

The first Binance exchange is looking to help bitcoin miners in a difficult time for crypto-currency trading.

Binance, the world’s leading crypto-currency exchange in terms of daily trading volume, has announced a plan to extend financial support to companies involved in crypto-currency mining. The loan plan was recently unveiled by the platform’s mining pool.

The program will help bitcoin mining and infrastructure providers as part of efforts to support the mining industry. “As one of the world’s leading crypto-currency mining pools, Binance Pool has a responsibility to help maintain a healthy digital asset ecosystem“, the exchange said, noting:

In light of current market conditions, Binance Pool is launching a $500 million loan project to support crypto miners and digital infrastructure providers.

This is the first initiative of its kind from Binance Pool. With this project, the global crypto-currency company aims to offer secure debt financing services to public and private bitcoin blue chip companies of digital asset mining and infrastructure companies around the world.

To access these loans, borrowers will have to agree to a set of conditions such as a term of 18 to 24 months and interest rates between 5 and 10 percent. Miners will also have to provide collateral satisfactory to Binance, either physical or in the form of digital assets.

In the announcement, the exchange also revealed that Binance Pool intends to launch cloud mining products. Since cloud mining hash power will be purchased directly from bitcoin mining and digital infrastructure providers, Binance Pool is looking for cloud mining providers to work with it, the trading platform explained.

Binance Pool is among the top mining entities in terms of hashrate share, alongside Foundry USA, Antpool, F2pool and Viabtc. After a drop on Sept. 27, the first in two consecutive months, bitcoin mining difficulty hit a record high on Oct. 10, as reported by Bitcoin.com News, making it more difficult than ever to mine bitcoin. BTC the cryptocurrency with the largest market capitalization.