Tuesday, December 6, 2022
HomeDeFiBinance Plans To Launch Its Cloud Mining Business In November

Binance Plans To Launch Its Cloud Mining Business In November

Binance, the largest cryptocurrency exchange in the world by trading volume, is continuing its drive into the cryptocurrency mining market with its new cryptocurrency cloud mining product. The company has plans to launch it within the next month and anticipates that it will be a huge success.

The price of bitcoin has been relatively stable at roughly $20,000 for the last few months, which is a dramatic change from its all-time high of more than $68,000 in November 2021. This has made it a difficult year for miners of cryptocurrencies. Other cryptocurrencies have had drops that are comparable to or even more severe than bitcoin. At the end of September, one of the biggest mining-related companies in the United States filed for bankruptcy under Chapter 11.

Meanwhile, other companies are seeing opportunities in this crisis. CleanSpark has been on a buying spree of mining rigs and data centres, and the decentralised finance (DeFi) platform Maple Finance has begun a $300 million lending pool. Both of these businesses are taking advantage of the situation.

Last week, Binance Pool made the announcement that it would be entering the cloud mining market. Cloud mining is a service that enables investors who otherwise may not be able to purchase and run their own equipment to rent crypto mining machines instead of purchasing them. A spokesperson for Binance said that the formal launch of the cloud mining service would take place in the month of November.

The approach of Binance with its own cloud mining service will create a front of competition with Jihan Wu’s Bitdeer, a cloud mining operator that also announced a $250 million fund in late September to purchase distressed assets. The firm’s goal is to acquire foreclosed properties. BitFuFu is another significant participant in the cloud mining area.

Both Bitdeer and BitFuFu sell a combination of their own and other people’s self-operated computer power, which is referred to as hashrate. In the blog post where it announced its initial entry into the industry, Binance Pool said that it would be purchasing hashrate from other parties. This most likely implies that the company would not be managing its own infrastructure.

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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