The mining pool sector, often overlooked as a "quiet money-maker," has recently gained attention due to Bitcoin's halving event and Binance's entry into the market. On April 1, Binance CEO Changpeng Zhao confirmed the launch of Binance Pool, followed by reports of hiring former Bitmain employees and targeting Chinese miners. With Binance's official entry, all three major Chinese exchanges now operate mining pools.
Key Insights into Mining Pool Profitability
1. Revenue Potential of Top Mining Pools
Why are mining pools attracting major players? Data from PAData (2020) reveals:
- 2019 Bitcoin Mining Revenue: ~678,700 BTC mined + 19,473 BTC in fees ($51.4 billion at $7,365/BTC).
Mining Pool Earnings (3% fee model):
- BTC.com: $26.5M (~¥186M)
- F2Pool: $20.1M (~¥140M)
- Others (Poolin, AntPool, etc.): Over $10M annually.
2. Exchange Motivations
Exchanges benefit from mining pools through:
- Liquidity Injection: 700K BTC sent to exchanges in 2019 (77% to top 10 platforms). Huobi (29%) and OKEx (12%) were primary recipients.
- Lending Opportunities: Mining-focused lending platforms like Babel Finance saw a 3,780% YoY growth in 2019, highlighting strong demand for crypto-backed loans.
Exchange-Led Mining Pools: Competitive Landscape
Current Rankings
- Huobi Pool: Stable 3–6% market share since 2018.
- OKEx Pool: Rapid growth to #6 by 2020 but faced volatility (centralized矿场 reliance).
- Binance Pool: Expected to leverage competitive fees and exchange synergies.
Advantages for Exchanges
- Brand Trust: Established credibility in crypto markets.
- Capital Strength: Ability to subsidize fees or offer discounts.
- Integration Benefits: Lower trading fees for pool participants.
Challenges and Risks
Market Competition
- Case Study: "BetterHash"矿池 exited due to unprofitability amid fee pressure (large矿场 negotiate rates as low as 1.5%).
Survival Factors:
- Technical stability (consistent block rewards).
- Cost efficiency (e.g., Bitmain’s矿机 advantage).
- User acquisition (exchanges excel here).
Earning Models Compared
| Model | PPS | PPS+ | FPPS |
|------------|---------|----------|----------|
| Fee Type | Fixed | Hybrid | Full Pay |
| Best For | Small矿工 | Balanced | Large矿场 |
Long-term收益 depends more on算力 and fees than settlement模式.
The Future: Cloud Mining and Beyond
Opportunities for Exchanges
Cloud Mining solves散户 challenges:
- Barriers: Technical setup, noise/heat, high electricity costs.
- Solutions: Huobi/OKEx already offer云算力; platforms like BitDeer lead the niche.
Strategic Edge: Exchanges can convert traders into矿工 via integrated services.
FAQs
1. Why do exchanges want mining pools?
Exchanges gain liquidity (BTC supply) and tap into矿工’s lending demand.
2. How do mining pools earn money?
Primarily via 1.5–5% fees on矿工 rewards, though large矿场 negotiate lower rates.
3. What’s the best payout model for small miners?
FPPS offers predictability, while PPS+ balances risk/reward.
4. Will Binance Pool disrupt the market?
Likely, via aggressive pricing and cross-platform incentives (e.g., discounted trading fees).