On Tuesday, institutional crypto lending protocol Maple Finance and its delegate Icebreaker Finance announced that they would support public and private bitcoin mining companies with up to $300 million worth of secured debt. Qualified entities that meet treasury management and energy strategy standards across North America and Australia are eligible for funding.
On the other hand, the company tries to provide investors and lenders with risk-adjusted returns in the low teens (up to 13% per year). The pool is only open to accredited investors who meet significant income and/or wealth requirements within a jurisdiction. In the United States, this means annual pre-tax income of over $200,000 ($300,000 with a spouse) or more than $1 million in liquid assets, among many criteria.
As disclosed by Maple Finance, the underlying loans in the new loan pool would have terms of 12 to 18 months with interest rates up to 20%. The loan would be secured by the borrower’s physical and intellectual assets and could include bitcoin mining rigs. Regarding the development, Sidney Powell, CEO and co-founder of Maple Finance stated:
“Recent headwinds in the market have caused lenders to pull back while traditional financing vehicles have been slower to appeal to this sector. Miners play an integral role in the growth of the crypto ecosystem and local economy, and we’re proud to extend a new funding vehicle to direct capital where it’s needed most.”
Maple currently holds 50% of the institutional crypto lending market in terms of total outstanding loans. At the time of publication, liquidity pools on Maple have originated nearly $1.8 billion in loans since its inception in May 2021.
Today, @IcebreakerDeFi joins Maple and opens a $300 million capacity pool to provide secured debt financing to blue chip bitcoin mining and digital asset infrastructure companies. pic.twitter.com/ZWyLV2P9hr
— Maple (@maplefinance) September 20, 2022
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