On Tuesday, the institutional cryptocurrency lending protocol, Maple Finance, and its delegate Icebreaker Finance announced that they would provide up to $300 million of collateralized debt financing to public and private bitcoin mining companies. Qualified entities that meet treasury management and energy strategy standards located throughout North America, as well as those in Australia, can apply for funding.
On the other hand, the company intends to offer investors and capital allocators a risk-adjusted return at low percentages (up to 13% per year). The fund is only open to accredited investors who meet the requirements of substantial income and/or net worth within a jurisdiction. In the United States, among other criteria, this means having an annual income before taxes of more than $200,000 ($300,000 if married) or having a liquid net worth of more than $1 million.
As Maple Finance let it be known, the underlying loans in the new loan pool would have a duration of between 12 and 18 months with interest rates of up to 20%. The loan would be secured by the physical and intellectual assets of the borrower, possibly including Bitcoin mining equipment. In relation to the development, Sidney Powell, CEO and co-founder of Maple Finance, stated:
“Recent market headwinds have seen lenders hold off, while traditional funding vehicles have been slower to commit to this sector. Miners play an essential role in growing the cryptocurrency ecosystem and economies. and we’re proud to expand a new funding vehicle to direct capital where it’s needed most.”
Maple currently holds 50% of the institutional crypto lending market, measured by total outstanding loans. As of press time, Maple’s liquidity pools have issued nearly $1.8 billion in loans since their inception in May 2021.
Today, @IcebreakerDeFi joins Maple and opens a $300M 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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