New Lending Pool for Crypto Miners Could Attract Borrowers | Crypto

New Lending Pool for Crypto Miners Could Attract Borrowers

-Icebreaker Finance and Maple Finance have launched a lending pool that offers interest rates between 15% and 20% to bitcoin miners.
-The pool has an initial capacity of $300 million and loans are collateralized by assets such as mining rigs, power transformers, and digital assets.
-The setup targets institutional credit investors and capital allocators as lenders, including high net-worth individuals, digital asset funds and traditional credit funds.
-The loans in the pool carry a term of 12 to 18 months.
-Maple has issued nearly close to $1.8 billion of loans since launching its first pool in May 2021.
-The terms for miners seem to be pretty onerous, according to Chase White, a senior research and policy analyst for Compass Point Research and Trading.
-Argo Blockchain, for example, inked a $70.6 million equipment-backed financing agreement with NYDIG in May that matures in 24 months on a 12% interest rate.
-Some miners in need of cash have resorted to selling their holdings of late, or using its bitcoin as collateral for loans.

crypto mining New Lending Pool for Crypto Miners Could Attract Borrowers

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