Crypto Exchange Binance to Venture Cloud Mining Industry Next Month

UTC by Steve Muchoki · 3 min read
Crypto Exchange Binance to Venture Cloud Mining Industry Next Month
Photo: Depositphotos

The Binance mining pool supports several proof-of-work (PoW) networks, including Bitcoin, Bitcoin Cash, Litecoin, ZEC, and forked Ethereum.

Binance, one of the leading and heavily regulated cryptocurrency firms in different jurisdictions, has announced plans to enter the crypto cloud mining industry in November. The company intends to help distressed crypto mining companies worldwide with a $500 million lending fund. As such, Binance will have diversified its earnings and helped the cryptocurrency industry grow amidst the sustained bear market.

“As one of the top mining pools in the world, Binance Pool will not only operate as a mining pool but also will take responsibility for contributing to building a healthy industry, especially during uncertain market conditions,” the Binance spokesperson said.

The Binance mining pool supports several proof-of-work (PoW) networks, including Bitcoin, Bitcoin Cash, Litecoin, ZEC, and forked Ethereum. The company has a total hash rate of 37545.98 PH/s, according to data provided by Btc.com.

Binance and the Crypto Mining Industry

Following a sustained bear market in the past few months, several crypto-mining pools have had to restructure their operations. While some crypto mining companies are struggling to avoid liquidation, Binance is in a quest to buy out their hashrate power. Furthermore, the company has a ready market of global investors, assuring goodwill.

Besides the crypto market shrinking in valuation, countries around the world are pushing blockchains to adopt environmentally friendly consensus mechanisms. This is evident with the most prominent smart contract ecosystem, the Ethereum network, that recently migrated to the PoS consensus mechanism via the Merge event.

Investing in crypto mining has not been profitable to most retailers and institutional investors. With crypto miners playing a critical role in securing blockchains, Binance has vowed to help struggling firms.

According to Binance lending rules, eligible miners can take a loan at an interest rate of between 5-10 percent and repay it in an 18 to 24-month term. Meanwhile, Binance clarified that it would accept physical and digital assets to process a loan.

“Binance Pool intends to launch cloud mining products. As the cloud mining hash power will be directly purchased from bitcoin mining and digital infrastructure providers, Binance Pool is looking for cloud mining vendors to work with us,” the company said.

Side Notes

The Bitcoin network currently has a total hash rate of 257.79 Exahashes/s and a difficulty of 35,610,794,164,372, according to Bitcoinblockhalf. At current prices of around $19k, Bitcoin reward per block stands at approximately $122,212.50. Worth noting that about 900 Bitcoins are generated per day under the current reward rate of 6.25 coins per block.

There are 50,494,365 Bitcoin holders, with the Binance cold wallet holding the most at 252,597 BTC worth approximately $4,940,551,433.

Altcoin News, Binance News, Blockchain News, Cloud Computing, Cryptocurrency news
Steve Muchoki

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