Key Points
- M2 and NiceHash have partnered to offer Bitcoin-backed loans to cryptocurrency miners.
- The loans, offered in Tether’s stablecoin, aim to help miners maintain liquidity without selling their Bitcoin holdings.
Abu Dhabi-based cryptocurrency exchange M2 has joined forces with NiceHash, a provider of cryptocurrency mining services.
The partnership aims to introduce flexible lending solutions for miners, enabling them to access liquidity without having to sell their Bitcoin (BTC) holdings.
Collaborative Lending Solutions
In this collaboration, M2 intends to provide loans in Tether’s (USDT) stablecoin to crypto miners, using BTC as collateral.
This lending solution is proposed as a way for miners to scale operations, manage cash flow, and cover expenses more efficiently.
M2 Chief Product Officer, Sudhu Arumugam, stated that the partnership with NiceHash is a shared vision of providing miners with intelligent financial solutions.
These solutions would allow miners to grow their businesses without having to sacrifice their Bitcoin holdings.
The Backbone of M2’s Lending
M2 suggests that miners could unlock liquidity by using their Bitcoin as collateral and avail flexible repayment options.
These options include allocating a portion of their hash rate.
NiceHash, a hashrate marketplace operator, stressed its role as more than just a temporary partner in the project.
It stated that its technology is now driving the technology behind M2’s lending solutions.
