2nd Largest BTC Mining Pool, Poolin, Collabs With BlockFi, To Boost Crypto Lending Service
- Poolin and BlockFi have formed a partnership as the latter aims to extend loans to the mining pool.
- Bitcoin (BTC) and mining equipment will be accepted as collateral by BlockFi.
Reports confirm that the U.S based institutional-grade crypto lender, BlockFi, will be extending credit to Pooling, the second largest Bitcoin mining pool. The latest move sets the mining pool on extending its crypto lending services to miners since launching Blockin, a Singapore-registered wallet entity, which offers loans to miners.
Since the halving, the hash rate slid over 30% down, showing a possible capitulation of miners as rewards were cut in half. This has seen miners struggle to raise their operating costs such as paying the electricity bill or buying new machines.
The new funding from BlockFi will allow Poolin to disburse more loans to miners in a bid to keep them afloat as well as keep the borrowing rates low at an annualized 6 percent.
Notwithstanding, a capital increase in Poolin’s coffers offers a new opportunity for the mining pool as competition in the mining industry gets tougher. It helps the company diversify its product offerings with more financial products being developed. Yang Jianguo, the head of financial services at Pooling said:
“Mining pool’s a traffic business and it is getting more and more competitive. Poolin has its unique advantage but we also want multiple business lines – not just lending but also financial services – that are parallel to our pool business.”
Despite the shaky nature of the mining arena since the halving, Yang believes miners will still take up these loans in a bid to keep their businesses alive. Poolin will accept Bitcoin mined as collateral, and BlockFi also accepts BTC and extends their collateral of assets also to mining equipment.
As of the time of publishing, Poolin ranks as the largest pool in the last 24 hours providing miners with 20.7 Eh/s, or 20.3% of the total hash rate.
BlockFi’s Efforts in Institutional Crypto Lending
As reported by BEG, BlockFi secured a $30 million Series B funding round led by Valar Ventures in February this year in a bid to increase its institutional lending. Three Arrows Capital, a 10-year venture capital firm also announce an undisclosed amount of funding in BlockFi this April to increase the institutional presence of the crypto lender.