Since the cryptocurrency exchange Binance launched a £446.97 million fund on October 14th for miners unable to cope with the ongoing downturn of the crypto market conditions, private and publicly-listed bitcoin miners can now apply for loans through Binance. These miners are the target audience for the fund.
Bitcoin miners who want to borrow money through Binance Pool, the company’s mining service, must put up collateral if they’re going to borrow money for 18 to 24 months. The assets that make up securities can either be physical or digital.
Following in the footsteps of Chinese crypto millionaire Jihan Wu, the creator of Bitmain, who set up a £223.59 million fund to acquire distressed assets from bitcoin miners last month, Bitcoin’s fund for miners has followed in his footsteps and created its fund to do the same thing.
It has been decided that Wu’s Bitdeer Technologies Holding Co would contribute £44.719 million from its private fund. After this, Wu intends to get an additional £178.87 million from investors outside the company.
The price of bitcoin has fallen to all-time lows, making life difficult for bitcoin miners during the past several months. Binance’s move comes at a time when bitcoin miners are facing difficult circumstances. In tandem with this development, these miners have also witnessed a significant drop in their revenue. The bitcoin mining company Compute North has already submitted a bankruptcy petition.
Last month, their income was down around 16.2%, coming in at £492.08 million, as reported by various sources. This slump was the sixth decline in the previous six months, and the total dropped to its lowest point since November 2020.
A second cryptocurrency company started a relief fund earlier this month for cryptocurrency miners who had financial difficulties. To invest in Bitcoin mining hardware, the cryptocurrency asset management Grayscale established a new company named Grayscale Digital Infrastructure Opportunities LLC.
The newly formed organization intends to purchase mining rigs and generate revenue through the sale of the bitcoins that are mined using the equipment. Following its quarterly on October 14th, 2022, the Binance (BNB) Chain effectively removed roughly 2,065,152.42 BNB, equivalent to £489.85 million worth of BNB. This is another significant achievement for the firm that operates the cryptocurrency exchange.
Additionally, the trading platform announced that its Pioneer Burn Program contributed an additional 4,833.25 BNB to the burn. The Pioneer Burn Program is a burning program that gives preference to users who have legitimately lost their digital assets.
In the Pioneer Burn Program, Binance takes responsibility for these losses by subtracting tokens from the quarterly burn lost by users due to honest mistakes. These tokens are subsequently refunded to the users according to some requirements that must be met.