Announcement of Closure

Binance, a prominent player in the cryptocurrency exchange market, has announced the impending closure of its mining pool, which is set to take effect on November 24, 2023. Miners utilizing this platform have approximately four weeks to transition their operations.

Starting from the cutoff date, Binance will cease crediting mining shares—records used to determine miners’ payouts. Users engaged in Pool Savings are urged to redeem their positions, while those expecting final payouts must complete necessary identity verifications by 11:59 p.m. UTC on that day.

Timeline of Events

As part of the closure process, Binance will permanently remove its pool pages on November 24, providing customers with a two-week window to download relevant records and verify their payout statuses.

Historical Context

This closure marks a significant shift in the industry. Four years ago, Binance actively sought to support miners by financing their expansions. In October 2022, the company launched a $500 million lending initiative through the pool, which offered secured loans for periods of 18 to 24 months at competitive interest rates ranging from 5% to 10%. However, the recent closure announcement does not clarify the status of this lending program or any outstanding loans.

Impact on the Mining Landscape

Binance’s decision follows similar actions taken by other companies in the space. Notably, SBI Crypto shut down its mining pool on July 31, which had accounted for about 2% of Bitcoin’s computing power. Earlier this year, crypto exchange OKX also discontinued its mining pool operations.

A December report by Hashrate Index indicated that Binance Pool stood as the last operating mining pool from the era when exchanges ventured into mining-related services.

Challenges Facing Major Players

Other prominent mining pools have faced their own challenges. Poolin, which was once the largest pool with nearly 20% of the global hashrate, filed for bankruptcy in July 2023, reporting debts of around $173 million. Its downfall stemmed from frozen wallet funds and delayed mining projects in Texas, resulting in a substantial decline in its pool share over the years.