Major DeFi lender Maple Finance has partnered with finance firm Icebreaker to launch a $300 million investment fund for bitcoin mining companies.
The fund targets “public and private major bitcoin mining and digital asset infrastructure companies” based in the US and Australia. The Fund offers loans for a period of 12 to 18 months at a rate of 15% to 20%.
Australian company Icebreaker Finance will manage the loans through the Maple platform. Loans will be provided to borrowers based on an assessment of balance sheet strength, operational efficiency and financial performance.
The prerequisite is that the loans must be backed by either real assets, such as mining rigs and power transformers, or cryptoassets. Icebreaker Finance Founder and CEO Glyn Jones spoke about the new trend in the fixed mining market:
“The market is now ripe to understand that buying hardware with your own money may not be appropriate given the volatility in the cost of ASIC devices. Instead, a more diverse and secure approach is required. Maple’s out-of-the-box online lending toolkit lets you align lenders’ and borrowers’ incentives for lending online with conditions that reflect the evolving nature of the industry more effectively than anywhere else.”
With a bearish trend in the cryptocurrency market, companies are struggling to get loans and pay off creditors.
Source: Bits
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