Binance is shutting down its Bitcoin mining pool after the computing power directed toward the service fell by roughly 65% from its level at the end of last year. Miners still using the platform must move their operations to another provider before the November 10 deadline.
According to Hashrate Index data, Binance Pool controlled an estimated 26 exahashes per second (EH/s) in December, representing approximately 2.3% of Bitcoin’s total network hashrate. Its latest figures show the pool operating at around 9.2 EH/s, accounting for less than 1% of the network and ranking 11th among mining pools. The decline represents a drop of roughly 65%.
An exahash per second represents one quintillion attempts each second to solve the computational puzzle required to produce a Bitcoin block. Mining pools combine the computing power of multiple machines, allowing participants to receive more consistent payouts instead of relying on the unpredictable chance of finding a block independently.
Binance previously operated under a full pay-per-share (FPPS) payout system. Under this model, miners received payments for their contributed computing power, while the pool assumed the risk of producing fewer blocks than expected.
Earlier this week, Binance announced that Binance Pool, Pool Savings, Cloud Mining, its transaction accelerator and associated services would be discontinued at 7 a.m. UTC on November 10. The exchange attributed the decision to an ongoing review of its products and services but did not provide a financial explanation for the shutdown.
Miners have until the deadline to redirect their equipment to alternative providers. Once the service closes, Binance will stop recording mining shares, which track the work contributed by participants and help determine their payouts. Customers using Pool Savings must redeem their positions, while users awaiting final payments should complete any required identity verification by 11:59 p.m. UTC on November 10.
Binance also plans to permanently remove the pool’s pages on November 24. This gives customers an additional two weeks to download their records and verify the status of outstanding payouts.
Binance Once Offered Millions in Financing to Bitcoin Miners
The shutdown comes four years after Binance expanded its support for the mining industry. In October 2022, the exchange announced a $500 million lending program through Binance Pool to help miners finance their operations and expansion.
The program offered secured loans with terms ranging from 18 to 24 months and interest rates between 5% and 10%. However, Binance’s closure announcement did not clarify whether the program remains active or disclose the amount of any outstanding loans.
Bitcoin Miners Face Fewer Pool Options
Binance is the latest major service provider to withdraw from Bitcoin mining. SBI Crypto closed its mining pool on July 31 after accounting for roughly 2% of the network’s computing power. Cryptocurrency exchange OKX also discontinued its mining pool services in February 2024.
In a December report, Hashrate Index described Binance Pool as the last remaining pool from the period when cryptocurrency exchanges increasingly expanded into mining operations.
Poolin, which once controlled nearly one-fifth of Bitcoin’s global hashrate, also filed for bankruptcy in July with approximately $173 million in liabilities. Its difficulties included frozen wallet funds and stalled mining projects in Texas. However, its share of Bitcoin’s network computing power had already fallen close to zero years earlier.
As smaller and mid-sized providers exit the market, the largest mining pools are accounting for an increasing proportion of Bitcoin block production. Hashrate Index’s latest data showed Foundry USA, AntPool and F2Pool collectively representing approximately 64.2% of the network. In December, the three largest pools controlled a combined 61.4%, although ViaBTC held third place at that time instead of F2Pool.
Mining pool operators traditionally decide which transactions participating machines work to confirm. As a result, the closure of major pools reduces the range of service providers available to miners and may increase the concentration of influence over which Bitcoin transactions are included in blocks.
Nevertheless, miners can redirect their computing power to smaller pools, and a pool’s share of the network does not indicate that it owns the underlying mining hardware.
If all of Binance Pool’s remaining computing power were transferred to Foundry USA, AntPool and F2Pool, their combined share would rise to approximately 65%, assuming the rest of Bitcoin’s network hashrate remained unchanged. Binance has not disclosed where its remaining miners are likely to redirect their operations.
About The Author
More Stories
Bitcoin Slips as Fed Rate Uncertainty Mounts and South Korea’s Kospi Crashes 8%
Australia’s Financial Regulator Pushes for Tougher Crypto Exchange Rules Ahead of Licensing Deadline
Ledger Plans to Expand Beyond Crypto Wallets With New Smartphone