Maple Finance launches $300 million loan pool for Bitcoin mining companies

The institutional lending platform has facilitated $1.8 billion in digital currency loans since May 2021.

On Tuesday, institutional crypto lending protocol Maple Finance and its delegate Icebreaker Finance announced that they would provide up to $300 million in secured debt funding to public and private bitcoin mining companies. Qualified entities meeting cash management and energy strategy standards located throughout North America, as well as Australia, are eligible to apply for funding.

On the other hand, the firm seeks to offer risk-adjusted returns in low teenage percentages (up to 13% per year) to investors and capital allocators. The pool is only open to accredited investors who meet substantial income and/or net worth criteria in a jurisdiction. In the United States, among many criteria, this means having an annual pre-tax income of more than $200,000 ($300,000 with a spouse) or having a liquid net worth of more than $1 million.

As reported by Maple Finance, the underlying loans in the new loan pool would last 12 to 18 months with interest rates of up to 20%. The loan would be secured by physical and intellectual assets owned by the borrower and could include Bitcoin mining rigs. Regarding the development, Sidney Powell, CEO and co-founder of Maple Finance, said:

“Recent market headwinds have caused lenders to pull out, while traditional funding vehicles have been slower to engage in this sector. Miners play a vital role in the growth of the ecosystem crypto and local economies, and we're proud to expand a new funding vehicle to direct capital where it's needed most."

Maple currently owns 50% of the institutional crypto lending market, measured by total outstanding loans. At press time, liquidity pools on Maple have issued nearly $1.8 billion in loans since its inception in May 2021.

Today, @IcebreakerDeFi joins Maple and opens a $300 million capacity pool to pro...