March 30, 2023

Major DeFi lender Maple Finance has launched a $300 million capacity pool for Bitcoin mining companies.

This development comes despite a sharp fall in the price of BTC and reduced capital injection into the mining sector.

Maple opened a fully collateralized $300 million loan pool

According to a announcement On Tuesday (September 20, 2022), the new fund targets “public and private blue-chip bitcoin mining and digital asset infrastructure companies” based in North America and Australia.

The pool offers underlying loans with tenors of 12-18 months with interest rates between 15-20%. Australian financial services company Icebreaker Finance will manage and administer loans through Maple’s platform. Funds will be administered to borrowers based on balance sheet strength, operational efficiency, and financial performance.

Furthermore, loans will be secured by real-world assets such as mining rigs and power transformers or digital assets.

Commenting on the latest development, Glynn Jones, founder and CEO of Icebreaker Finance, said:

“The market is now maturing to realize that non-recourse SPV ASIC backed financing may be inappropriate due to ASIC’s price volatility. Instead, a more diverse security package is needed. Maple’s out-of-the-box, on-chain transaction toolkit enables us to align the incentives of lenders and borrowers so that we can execute loans with terms that reflect the evolving nature of the industry more efficiently than elsewhere.”

Funding Issues for Bitcoin Miners

The news comes at a tumultuous time for Bitcoin miners to secure financing for their operations. The crypto bear market has seen mining companies struggling to secure loans and pay back creditors.

In June, there were Bitcoin miners the struggle To repay nearly $4 billion worth of debt, which was backed by their equipment. As previously reported by CryptoPotatoBitcoin miner Core Scientific sold 7,000 BTC in June alone, for an average price of $23,000 per coin, leaving 1,959 BTC in the company’s coffers.

Later the company entered into an agreement Investment company b. With Riley, that will see the next purchase of $100 million of common stock in Core Scientific over two years.

Maple Finance co-founder and CEO Sidney Powell said:

“Recent market headwinds have forced lenders to pull back, while traditional financing vehicles have been slow to engage the sector. Miners play an essential role in the growth of the crypto ecosystem and local economy, and we’re proud to expand a new financing vehicle to direct capital where it’s needed most.”

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