Crypto lending protocol Maple Finance and its delegate Icebreaker Finance reportedly revealed their initiative of offering a maximum of $300 million equivalent of secured debt financing to public and private Bitcoin mining firms. 

Specifically, establishments meeting the qualifications, particularly in holding a treasury management and power strategies standards situated throughout North America, along with the ones in Australia, are eligible for funding submission.

On the other hand, the venture is aiming at providing risk-adjusted returns in the low teen percentages (up to 13% per annum) to investors and capital allocators. 

The pool is available exclusively to accredited investors who meet substantial income and/or net worth qualifications within a jurisdiction. In the United Stat, among many criteria, this means having an annual pre-tax income of over $200,000 ($300,000 with a spouse) or having a liquid net equivalent to over $1 million.

Per insights from Maple Finance, underlying loans in the new lending pool would last for 12 to 18 months with a maximum interest rates 20%. The loan would be secured by physical and intellectual assets in the possession of the borrower and could include Bitcoin mining rigs. 

“Recent market headwinds have caused lenders to pull back, while traditional financing vehicles have been slower to engage this sector. Miners play an essential role in growing the crypto ecosystem and local economies, and we are proud to extend a new financing vehicle to direct capital where it is needed the most.” Sidney Powell, CEO and co-founder of Maple Finance, reportedly remarked regatding the development. 

At the moment, Maple has possession of half of the institutional crypto lending market as measured by total loans outstanding. At the time of publication, liquidity pools on Maple have issued close to $1.8 billion worth of loans since its inception in May 2021.