Maple Finance launches $300M lending pool for Bitcoin mining firms

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On Tues­day, insti­tu­tion­al cryp­to lend­ing pro­to­col Maple Finance and its del­e­gate Ice­break­er Finance announced that they would pro­vide up to $300 mil­lion worth of secured debt financ­ing to pub­lic and pri­vate Bit­coin min­ing firms. Qual­i­fied enti­ties meet­ing trea­sury man­age­ment and pow­er strate­gies stan­dards locat­ed through­out North Amer­i­ca, as well as those in Aus­tralia, can apply for funding.

On the oth­er hand, the ven­ture seeks to deliv­er risk-adjust­ed returns in the low teen per­cent­ages (up to 13% per annum) to investors and cap­i­tal allo­ca­tors. The pool is only open to accred­it­ed investors who meet sub­stan­tial income and/or net worth qual­i­fi­ca­tions with­in a juris­dic­tion. In the Unit­ed Stat, among many cri­te­ria, this means hav­ing an annu­al pre-tax income of over $200,000 ($300,000 with a spouse) or hav­ing a liq­uid net worth of more than $1 million.

As told by Maple Finance, under­ly­ing loans in the new lend­ing pool would last for 12 to 18 months with inter­est rates of up to 20%. The loan would be secured by phys­i­cal and intel­lec­tu­al assets owned by the bor­row­er and could include Bit­coin min­ing rigs. Regard­ing the devel­op­ment, Sid­ney Pow­ell, CEO and co-founder of Maple Finance, stated:

“Recent mar­ket head­winds have caused lenders to pull back, while tra­di­tion­al financ­ing vehi­cles have been slow­er to engage this sec­tor. 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.”

Maple cur­rent­ly holds 50% of the insti­tu­tion­al cryp­to lend­ing mar­ket as mea­sured by total loans out­stand­ing. At the time of pub­li­ca­tion, liq­uid­i­ty pools on Maple have issued close to $1.8 bil­lion worth of loans since its incep­tion in May 2021.



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