Binance to Launch Cloud Mining Business in November

The crypto exchange's hashrate pool is pushing into the troubled crypto mining industry.

AccessTimeIconOct 17, 2022 at 6:22 p.m. UTC
Updated May 9, 2023 at 3:59 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The world's largest crypto exchange by volume, Binance continues its push into the embattled crypto mining industry with a plan to begin offering a crypto cloud mining product next month.

Crypto miners have had a tough year, with the price of bitcoin having hung around $20,000 for months, a far cry from its peak above $68,000 in November 2021. Other cryptos have faced similar or even worse declines. One of the largest mining-related firms in the U.S. filed for Chapter 11 bankruptcy in late September.

  • How NEAR Enables Multichain Access From One Account
    00:56
    How NEAR Enables Multichain Access From One Account
  • Why the NEAR foundation Chose Eigenlayer as a Security Partner
    00:54
    Why the NEAR foundation Chose Eigenlayer as a Security Partner
  • Judge Kaplan Had 'No Love' for Sam Bankman-Fried, Legal Expert Says
    07:08
    Judge Kaplan Had 'No Love' for Sam Bankman-Fried, Legal Expert Says
  • How Bitcoin and Ether's Options Contracts Combined Expiry Could Spike Volatility
    01:11
    How Bitcoin and Ether's Options Contracts Combined Expiry Could Spike Volatility
  • Other companies, however, are seeing opportunity from this crisis, with CleanSpark going on a buying spree of mining rigs and data centers, and decentralized finance (DeFi) platform Maple Finance starting a $300 million lending pool.

    Binance Pool announced its own $500 million lending fund for bitcoin miners last week and said it would enter cloud mining, a service that allows investors – who otherwise might not be able to buy and operate their own equipment – to rent crypto mining machines. The official launch of the cloud mining service will come in November, a Binance spokesperson told CoinDesk via email on Monday.

    The move opens a front of competition with Jihan Wu's Bitdeer, a cloud mining operator that also launched a $250 million fund to buy distressed assets in late September. Wu is the ousted co-founder of Bitmain, the largest manufacturer of crypto mining machines in the world. Another big player in the cloud mining space is BitFuFu, backed by Bitmain's other founder, Ketuan Zhan.

    Bitdeer and BitFuFu sell a mix of their own and others' self-operated computing power, or hashrate. In its blog post announcing its own move into the business, Binance Pool said it would be buying hashrate from third parties, likely meaning that it wouldn't be operating its own infrastructure.

    "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 an uncertain market conditions," the Binance spokesperson said.





    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Eliza Gkritsi

    Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.