Topic: Binance Provides $500M Loan for Bitcoin Miners - page 4. (Read 788 times)

First thing I thought, this ain't no favor. 18 to 24 month loan? You would be hard pressed to buy and house a miner to break even at that. The timing is for miners to default at or near the halving and take their assest, now that it has become profitable. Like shark title loan.

Because if you are running an unprofitable business, the best possible thing to do is to lock up your assets for 2 years to take out a loan at 10% so you can continue to run your unprofitable business and end up even more in debt than you were to begin with.

Don't be fooled in to thinking this is Binance doing something good for the network. It isn't. This is Binance doing whatever they can to make more profit for themselves, at the expense of anyone and anything else. Just as they have always done.

The last retarget saw the difficulty increase by one of the highest jumps ever, and the highest since May last year. We are on track for another 5% jump in this period. Hashrate is at its highest ever, and continuing to grow. The ecosystem is "running and growing" just fine, without this cash grab from Binance.

Miners have to afford to lose temporary because they can not have profit from mining in both bear market and bull market. It is easily to have profit from mining in bull market but in bear market, it is different.

In bear market, they can have very slim profit and sometimes, they even have loss. However, if they can keep mining and hold their mining rewards and wait for a next bull run, they will get very good return at the end. It would be more similar to long term investment for miners. If miners are short term miners, they will have more risk to get loss.

As a large exchange and currently the most popular crypto exchange, Binance announced that it will provide or facilitate Bitcoin miners with a nominal value of $500 million and will be awarded to Public Bitcoin mining companies and Private Bitcoin Mining and digital asset infrastructure globally.

In its announcement a few days ago Binance will seriously support the mining industry and will also look for cloud mining vendors.

This plan emerged when Bitcoin Miners had a difficult moment in recent months and the bitcoin price continued to fall to touch -72% of the previous ATH. Of course, this year has been an unfavorable year for miners, while electricity costs and maintenance costs continue and are increasingly expensive.


According to data from The Block Research, Bitcoin Miner revenue continues to decline from its highest in November 2021 with revenue of $1.7 billion and to date in September Miner earns $550 million in revenue and that's down about 67.7%, which is definitely a huge drop. and the loss of miners is also caused by a decrease in the price of bitcoin.

And as a solution for Bitcoin miners who had experienced losses, Binance Pool as one of the world's leading crypto miners has a responsibility to keep the digital asset ecosystem running and growing. The $500 million Binance Pool loan project will support crypto miners and digital infrastructure providers.

Loan Terms from Binance

Borrowers must meet several conditions that will be asked including:

- Term For Loans is 18 to 24 months
- Loan interest rates range from 5% to 10%
- Offers security for both physical and digital asset markets, which will satisfy Binance.

Binance will also cooperate with Cloud Mining vendors, as the Binance pool intends to launch a Cloud Mining product.

Source: https://www.theblock.co/data/on-chain-metrics/bitcoin
            https://www.binance.com/en/blog/mining/binance-pool-to-support-btc-mining-industry-with-a-$500m-miner-lending-project-694684880316935062