A Top Bitcoin Mining Pool Goes Dark: Japan's SBI to Pull the Plug on July 31

SBI Crypto, a subsidiary of Japanese financial firm SBI Holdings, will shut its Bitcoin mining pool on July 31, a move that lands as several major miners abandon the business to chase artificial intelligence.

SBI Crypto, a wholly owned unit of the Japanese financial heavyweight SBI Holdings, is winding down its Bitcoin mining pool services. The company shared the news itself. Notably, it offered no reason for the decision, but made clear that operations will come to a full stop on July 31.

The firm has sought to reassure its customers that nothing will change before that date. According to the company, the pool will keep running under normal conditions until then, and users can continue mining and receiving their payouts just as they always have. Its stated aim is to keep delivering stable and reliable mining pool operations right up to the planned closure date.

A Business Running Since 2017
According to its website, the company has offered a cryptocurrency mining service since at least 2017. Data from Hashrate Index shows it currently runs the 11th largest Bitcoin mining pool by hash rate. Beyond Bitcoin, the pool also lets users mine Bitcoin Cash and Litecoin.

Bitcoin mining pools give smaller players a way to team up. Many participants combine their resources and computing power, or hash rate, to compete for Bitcoin blocks and the BTC rewards that come with them. The moment the pool finds a block, the rewards are split among the members in proportion to the resources each one contributed.

Users Will Need a New Home
SBI's mining pool users will now have to look elsewhere. The company says it is trying to ease that transition by holding business and technical discussions with other mining pool operators such as Braiins and Luxor. It added that some operators may roll out special programs or preferential terms for clients moving over from SBI Crypto.

Big Miners Racing Toward AI
SBI Crypto's exit from mining fits a wider pattern. Large Bitcoin miners have been leaving the field in search of better returns in artificial intelligence. Last year, publicly traded miner Bitfarms said it would wind down its operations entirely as it pivoted to AI and rebranded as Keel Infrastructure.

Other major miners have struck multi-billion-dollar AI compute deals with big tech firms, even while keeping their Bitcoin operations running. With Bitcoin's price falling, the mining business has grown steadily tougher for companies. The leading cryptocurrency is now down more than 50% from its all-time high of $126,080, set last October.

The Parent Company Still Betting on Crypto
Even as SBI drops its mining business, its parent company is pressing ahead in crypto. Earlier this week, SBI Holdings announced it had agreed to buy the Japanese crypto exchange Bitbank for $289 million.

What this means for you
• For miners: Anyone using the SBI Crypto pool must move to another pool such as Braiins or Luxor before July 31, or their mining and payouts could stop.
• For investors: With Bitcoin down more than 50% from its peak and big miners exiting the business, the news signals continued caution in the market.

Questions & Answers

1. When will SBI Crypto's Bitcoin mining pool shut down?
The company says operations will come to a full stop on July 31.

2. What reason did the company give for closing it?
The company did not give any reason for the decision.

3. How are users' mining and payouts affected before the shutdown?
According to the company, the pool will run normally until July 31, and users will keep mining and receiving payouts as usual.

4. How big is this pool?
Data from Hashrate Index shows it is the 11th largest Bitcoin mining pool in the world by hash rate.

5. Where can SBI users go now?
The company is in discussions with other mining pool operators such as Braiins and Luxor so customers can transition there.

6. How far is Bitcoin below its record high right now?
Bitcoin is now down more than 50% from its all-time high of $126,080, set last October.

7. Is SBI Holdings exiting crypto entirely?
No, the parent company is still pushing ahead in crypto and this week agreed to acquire Japanese exchange Bitbank for $289 million.

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