Institutional crypto loan protocol Maple Finance and its representative Icebreaker Finance announced on Tuesday that they will provide collateralized debt financing of up to $300 million to public and private bitcoin mining firms. Qualified organizations located in North America or Australia, as well as meeting treasury management and power strategy management standards, are eligible to apply for funding.
The initiative also aims to provide risk-adjusted returns of up to 13 percent per year to investors and capital allocators. The pool is open only to approved investors who meet significant income or net worth qualifications within a jurisdiction. This criterion means having a pre-tax income of more than $200,000 per year ($300,000 with spouse) or a liquid net worth of more than $1 million in the United States.
Fundamental loans in the new loan pool will last 12 to 18 months, with interest rates of up to 20 percent, as Maple Finance says. The loan will also be secured by the borrower’s physical and intellectual assets, possibly including Bitcoin mining rigs. Sidney Powell, CEO and co-founder of Maple Finance, said:
“The current market downturn has caused lenders to pull back, while traditional financing instruments have been slower to participate in this industry. Miners play a key role in growing the crypto ecosystem and local economies, and we are seeking new financing to direct capital where it is needed most. We are proud to expand the vehicle.”
When measured by total loans outstanding, Maple currently owns 50 percent of the institutional crypto loan market. Liquidity pools at Maple have loaned close to $1.8 billion since its inception in May 2021, according to calculations at the time of writing.
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