This Friday, October 14, the Binance platform announced an extensive support plan for Bitcoin miners. As the difficulty of mining increases, the world’s largest exchange puts 500 million dollars on the table to support the sector. A sector hit hard by the drop in the price of the mother of cryptocurrencies, but also by other external parameters. In its press release published today, the platform announces that it is also looking for cloud mining partners.
A breath of fresh air for Bitcoin miners!
To face a crypto winter that could be located in more permanent, the giant Binance has just announced the creation of a fund according to 500 million dollars to support the Bitcoin mining industry. It is through Binance pool that the Binance platform will implement this device. As the recently issued press release indicates:
As one of the largest cryptocurrency mining pools in the world, Binance Pool has a responsibility to help maintain a healthy digital asset ecosystem. Given the current market conditions, Binance Pool is launching a $500 million loan project to support crypto miners and digital infrastructure providers.
In concrete terms, this global coverage must be used to granting loans to various mining companies. From the smallest, to the largest which are sometimes listed on the stock exchange. In the case of these structures, the loans will be granted for a period of 12 to 24 months with interest rates between 5 and 10%. In return, the companies concerned will have to show their credentials. By providing physical and/or digital guarantees. For minors, who are sometimes in trouble, this measure is obviously welcome. In fact, the aggregation of the two parameters which is the fall in the price of Bitcoin and the increase in the price of electricity is very much undermining the profitability of the sector.
But this Binance initiative is far from an isolated case. A few weeks ago, Bitmain took the lead in announcing the creation of a $250 million fund to help the mining ecosystem. At the same time, the Maple Finance platform announced the creation of a loan pool. With the key, 300 million dollars. The major players in the crypto world have realized that miners are an essential cog in the maintenance and movement of the Bitcoin sphere. And by extension, the entire crypto market.
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However, Bitcoin mining is still fashionable!
Despite the bearish market, many companies, public or private, are launching Bitcoin mining initiatives. This is especially the case with Greyscale, which recently announced its intention to invest in Bitcoin mining hardware. Argentine public company YPF has just launched a pilot project that provides electricity for Bitcoin mining. Jaan Tallinn, co-founder of Skype, who is now associated with Metaplanet, invests in the company Fabric Systems. A company that seeks to produce bitcoin mining hardware that consumes less energy. Other companies like Luxor focus on the ability to bet on mining volume. In a way, you can for example “shorter miners’ income”
Mining difficulty has reached historic highs this year. In the last few weeks, and as shown in the graph below, the difficulty of mining has increased by almost 15%. A year ago it was 19.8 terahash. It is now over 35.6 terahash.
Good to know: When the mining difficulty increases, it means more and more miners. For many, this indicator represents market optimism, as well as providing stronger network security.
If the mining difficulty increases significantly, the data from IntoTheBlock shows that the amount of BTC kept in the reserve decreases visibly. The reserves are currently close to the level recorded in February 2010. In September, miners’ income fell by around 16%. They were now just over $550 million. For minors, this is the fifth month of decline in the last 6 months. To find such a difficult month for minors, we have to go back to September 2021.