Key Ideas:
- Due to the catastrophic winter storm that hit North America from December 24 to 26, Binance's cloud mining services were not available.
- Bitcoin mining on Binance's cloud requires the purchase of hashrates through subscriptions.
- The choice made by Texas miners has resulted in a 30% global decrease in Bitcoin transaction volume. Texas is one of the most active Bitcoin mining states in the US, along with New York, Kentucky, and Georgia.
Binance's cloud mining services were not available from December 24 to 26 owing to the severe winter storm in North America, according to a Dec. 28 official notification. According to the company, customers' subscriptions to cloud mining products were extended by three days as a result of the power outage.
Binance predicts that additional weather-related problems will result in subscriptions to cloud mining expiring sooner.
The recently launched cloud mining service of the exchange allows users without mining hardware to now get mining profits from Binance Pool. Bitcoin mining on the Binance cloud requires the purchase of hashrates through subscriptions.
In the days leading up to Christmas, a "bomb cyclone" released extreme temperatures that left millions of Americans without electricity and claimed hundreds of lives.
Texas bitcoin miners voluntarily decreased their output in response to the cold and switched back to the grid so that residents could heat their homes. Disruptions caused Bitcoin's hash rate to drop, from a more typical rate of between 225 and 300 EH/s on December 25 to 170.60 EH/s.
The Texas miners' choice has resulted in a 30% global lag in Bitcoin transactions. Texas is one of the most active Bitcoin mining states in the US, along with New York, Kentucky, and Georgia. All states were recently affected by the bomb cyclone.
Binance has been the victim of FUD since FTX's implosion in November, which has resulted in withdrawals totaling billions of dollars. While stymieing rumors, the cryptocurrency exchange has continued to expand its business model. Additionally, the company revealed last month that Binance Labs, its startup capital arm, had invested in and will be managing the Series A funding round of Belgian hardware wallet company Ngrave.
