Binance Pool is ready to collect more Bitcoin hashrates in Russia and Central Asia

Binance Pool is ready to collect more Bitcoin hashrates in Russia and Central Asia - 1 9wbeJBFW34hD787vhNkFkA 1024x683The world's largest cryptocurrency exchange is implementing a physical server node for its pool at BitRiver, the largest provider of bitcoin mining machines in Bratsk, Russia.

The move would give BitRiver owners a better connection and a direct path to Binance's mining pool, the two companies said in an announcement last week.

In return, Binance would gain visibility and access to customers who manage their machines at BitRiver, which currently manages mining facilities with a capacity of 70 megawatts (MW) out of a total capacity of 100 MW.

The new agreement between BitRiver and Binance

The collaboration with BitRiver leads to the use of more cutting-edge bitcoin mining machines, such as Bitmain's AntMiner S17 or equivalent models with an efficiency level of about 50 watts per terahash per second (W / T).

The deal underscores Binance's strategy of absorbing bitcoin miners in several regions - with somewhat aggressive pricing plans since its launch - in its exchange functions, including spots, futures and margin trading.

"Binance Pool offers a highly competitive fee structure to miners on an institutional scale, who are customers of our data center," said Igor Runets, BitRiver CEO in the announcement.

It is estimated that up to 50% of the client companies' hashrate could go to Binance Pool following the agreement. These clients will primarily pass through the Bitmain-controlled pool, Runets added.

The two sides have not revealed whether or how Binance offers discounted rates to attract customers to BitRiver. But a lower rate than the market is one of the key measures that Binance has taken to stimulate the competition of the Bitcoin mining pool despite the revenue generated by this activity being negligible compared to its commercial side. Binance is also targeting miners in Kazakhstan.

Binance's strategy

The exchange rolled out its bitcoin mining service in late April, accumulating around 7000 PH / s of bitcoin hashrate and is currently the eighth bitcoin mining pool, after its competitors Huobi and OKEx.

It adopted the so-called Full-Pay-Per-Share (FPPS) model and initially offered zero commissions while now charging less than 2,5%. In some cases, the tariff offered to large-scale mining operators may be less than 1%.

In the meantime, other major bitcoin mining pools such as F2Pool and PoolIn have reduced their commissions from 4% to 2,5%, although larger customers also have the flexibility of an additional discount.

The FPPS model implies that a pool only charges an agreed block grant fee for each block it has extracted and then distributes the block subsidies and transaction fees to the miners in proportion to their contribution.

According to current data, even with a 2,5% commission, the commissions generated would be about half a million dollars. If you want to know how buy shares, you can take a look at our in-depth article and let us know what you think in the comments.