On September 20, Maple Finance, an institutional cryptocurrency lending protocol and its delegate Icebreaker Finance, announced via tweet that they would finance Public and private Bitcoin mining companies with secured debt worth up to $300 million.
Maple finance Twitter post:
Australia-based and North American organisations that adhere to treasury management and power plans management criteria are both eligible to apply for financing.
On the other hand, the business aims to offer investors and capital allocators risk-adjusted profits in the lower digit percentages (up to 13% annually).
Only qualified investors who fit specific income and net worth requirements within a country are permitted to access the pool.
In the United States, among other requirements, this entails possessing a liquid net worth of over $1 million or yearly pre-tax earnings of more than $200,000 ($300,000 with a spouse).
As said by Maple Finance, the underlying debts in the new financing pool would have durations between 12 and 18 months and interest rates of up to 20%.
The borrower’s material possessions and intangible assets, which might include bitcoin mining equipment, would serve as collateral for the loan.
Maple Finance’s CEO and co-founder, Sidney Powell, commented on the development and said, “recent market challenges result in Lenders to pull back and conventional finance sources have been slower to support this industry. Miners are crucial in developing the cryptocurrency ecosystem and local economies and we are delighted to introduce a new funding mechanism to allocate cash where it is most needed.”
As calculated by the total loans outstanding, Maple presently owns 50% of the institutional crypto lending market. Since its launch in May 2021, liquidity pools on Maple have given debts totaling around $1.8 billion at the time of writing.
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