Aussie DeFi platform Maple Finance to launch $300m lending pool to help Bitcoin miners

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Maple Finance, one of crypto’s major insti­tu­tion­al DeFi lenders, has teamed up with Ice­break­er Finance to launch a ful­ly col­la­terised $300 mil­lion lend­ing pool for strug­gling Bit­coin min­ing firms.

Accord­ing to a Maple/Icebreaker announce­ment, and a thread of Maple tweets yes­ter­day, the lend­ing pool is geared towards pro­vid­ing secured debt financ­ing to pub­lic and pri­vate “blue-chip” Bit­coin min­ing and dig­i­tal asset infra­struc­ture com­pa­nies in North Amer­i­ca, Cana­da and Australia.

Under­ly­ing loans in the new lend­ing pool will report­ed­ly last for 12 to 18 months with inter­est rates of up to 20%. Loans will be secured by phys­i­cal and intel­lec­tu­al assets owned by the bor­row­er and that can include Bit­coin min­ing rigs.

“Recent mar­ket head­winds have caused lenders to pull back, while tra­di­tion­al financ­ing vehi­cles have been slow­er to engage this sec­tor,” not­ed Sid­ney Pow­ell, CEO and co-founder of Maple Finance, adding:

“Min­ers play an essen­tial role in grow­ing the cryp­to ecosys­tem and local economies, and we are proud to extend a new financ­ing vehi­cle to direct cap­i­tal where it is need­ed the most.”

For Maple, this marks the first time real-world assets will be used as col­lat­er­al on the plat­form and, accord­ing to the announce­ment “the first step out­side of the exist­ing mar­ket-mak­er bor­row­er set”.

Mean­while, for investors, the open­ing of this pool is the first pub­lic oppor­tu­ni­ty to lend to min­ing and dig­i­tal asset infra­struc­ture providers.


Who said Bitcoin mining was bad for the environment?

Well, lots of peo­ple, notably includ­ing ele­ments of the US gov­ern­ment. But, as the ABC report­ed last week, there’s a cryp­to-min­ing data cen­tre in South Australia’s Whyal­la that’s doing its best to change that narrative.

Oper­at­ed by Lumos Dig­i­tal Min­ing, the 5 megawatt data cen­tre will be used to mine Bit­coin and is set to run almost entire­ly on solar-gen­er­at­ed electricity.

Com­ment­ing on the encour­ag­ing­ly green new Bit­coin enter­prise, South Aus­tralia State Min­is­ter for Trade and Invest­ment Nick Cham­pi­on said:

“This is impor­tant for decar­bon­is­ing blockchain, which is a very ener­gy-inten­sive indus­try. I think it’s the begin­ning of a new econ­o­my out here at Whyalla.”

Cham­pi­on fur­ther, er, cham­pi­oned the cause, posit­ing the idea that this new set-up paves the way for oth­er green cryp­to-min­ing operations.

“There will be demand for blockchain, but also car­bon-neu­tral blockchain so I think we will see more and more facil­i­ties like this,” he added.

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