Bitcoin miners can now access loans backed by their cryptocurrency thanks to a new collaboration between M2 and NiceHash.
The Abu Dhabi-based exchange M2 has teamed up with NiceHash, a provider of cryptocurrency mining services, to create adaptable lending solutions for miners. As stated in a recent announcement, this initiative is designed to assist miners in securing liquidity without having to liquidate their Bitcoin (BTC) assets.
Through this partnership, M2 intends to provide loans in the stablecoin Tether (USDT), allowing miners to use their BTC as collateral. The companies propose that these loans will enable miners to expand their operations, manage expenses, and improve cash flow management.
“At M2, we recognize the liquidity issues miners encounter while trying to safeguard their Bitcoin investments. Our collaboration with NiceHash embodies a mutual goal of equipping miners with innovative financial solutions that facilitate business growth without requiring them to part ways with their Bitcoin holdings.”
— Sudhu Arumugam, Chief Product Officer of M2
Core of M2’s lending approach
M2 indicates that miners can release liquidity by leveraging their Bitcoin as collateral, along with “flexible repayment options that might include allocating a percentage of their hash rate.”
NiceHash, recognized as a hashrate marketplace, emphasized that it plays a fundamental role in this venture, highlighting that its technology is the driving force behind M2’s lending solutions.