Prominent crypto exchange, Binance has been zooming through the bear market with an array of its initiatives. Now, once again, the exchange decided to extend support to the Bitcoin [BTC] mining industry.
In a recent blog post, Binance Pool revealed that it formulated a $500 million lending project for Bitcoin miners. This included both private and public miners. Through this initiative, the exchange intends to provide loans to these miners. However, the miners will be required to present security to attain the loan, which will last between 18 and 24 months, in the form of tangible or digital assets.
In addition to this, these loans will entail interest rates ranging from 5 to 10 percent.
This wasn’t the only thing that was part of Binance Pool’s latest initiative. The blog post noted that the exchange intends to roll out cloud mining products. Elaborating on the same Binance wrote,
“As the cloud mining hash power will be directly purchased from bitcoin mining and digital infrastructure providers, Binance Pool is looking for cloud mining vendors to work with us.”
Binance’s latest project to help distressed miners
The bear market posed problems for the entire industry. The Bitcoin mining industry hasn’t been very profitable following the decline of the world’s largest cryptocurrency. The asset has struggled to move beyond $25K. This plummet was reflected in BTC’s mining profitability.
As seen in the above chart, Bitcoin’s mining profitably has witnessed a steep fall since last year. With BTC trading for $19,807 at press time, its mining profitability stood at 0.0736.
It should be noted that a miner’s profitability is influenced by other aspects as well. Increased difficulty makes things considerably worse for BTC miners, who are already having trouble as a result of low BTC prices and rising energy costs.
Therefore, Binance’s latest initiative could pose to be highly beneficial for Bitcoin miners.