Another mining operation shutting down

[KiaKia]

SBI crypto is a mining company that controls 2% of the total mining hashrate that exists on Bitcoin network, it's shocking that I woke up to the news that they are closing down their mining operation.

This company has 20EH/s, that's a lot, I am wondering why they decide to close down, but honestly speaking this will be noticeable on mining difficulty as a whole don't you think?



What I am about to share is not confirmed yet but is this another AI data center taking over in the underground? Also do you think that this 2% hashing power gone will be noticeable? In terms of solving blocks?

https://www.coindesk.com/business/2026/07/02/sbi-crypto-to-shut-down-mining-pool-that-holds-roughly-2-of-bitcoin-s-hashrate

[_act_]

What I am about to share is not confirmed yet but is this another AI data center taking over in the underground? Also do you think that this 2% hashing power gone will be noticeable? In terms of solving blocks?

They do not let anyone know the reason they want to stop bitcoin mining. It is only them that know the reason they want to stop bitcoin mining. It is very possible that it is because they want to go into AI center, but no one knows yet.

This is the original announcement: https://sbicrypto.com/announcements/

The 2% hashrate will not be noticable. Some miners will later leave the mining pool to join another mining pool.

[Mia Chloe]

SBI crypto is a mining company that controls 2% of the total mining hashrate that exists on Bitcoin network, it's shocking that I woke up to the news that they are closing down their mining operation.

I think this is probably an example of the he cases we might have gradually that Will over time prompt people to discuss more on the future of the mining industry as we approach smaller and smaller block rewards. Hardware is getting expensive as well as electric costs too in some countries it ain't even worth it.

Considering the competition 2% is actually kinda huge if compared to the percentage a solo miner generates on average. However it's gonna have a near zero effect in the general network.

[philipma1957]

well they could have all s21 units.

that is 200 x .029 or 5.80 in earnings prior to power cost.

they burn 3.5x24=84  kwatts actually more like 88

so 88x.06=5.28

5.80-5.28=0.52

52 cents a machine per day is bad

1 eh = 1 million th

20 eh = 20 million th

20 million th means 100,000 x 200=20,000,000

so they need to dump 100,000 s21 units

buy s23 hydro is very costly

they quit instead.

[FP91G]

I believe smaller companies don't have a large financial cushion and will close or refocus their businesses on more profitable ventures. For small mining companies, the cost of mining Bitcoin is currently higher than the market price. Although the reasons haven't been stated, I believe losses are the main reason.

[ROCterm]

If Bitcoin keeps going down like into the 50s we will likely see more companies like this closing down, it's getting harder to mine Bitcoin and stay profitable I believe, even right now some people can only keep mining with few numbers of miner turned on.

They will have to sell others to avoid further losses, the game will be left for people who have extremely cheap electricity in their city or country, I will like to know if this will affect the price of miners too?

It's going to get boring soon, probably when we hit the bottom finally,  I expect Bitcoin to stay in bottom range for few months before we start driving again, but what did I know? Just a newbie learning about Bitcoin charts.

[NotFuzzyWarm]

They are a mining pool - not a mega farm, and the actual miners have a month to switch to another pool. So, it should not affect global hash rate. A better question is, who are the actual miners that were using their pool and what was their incentives for it?

[FP91G]

They are a mining pool - not a mega farm, and the actual miners have a month to switch to another pool. So, it should not affect global hash rate. A better question is, who are the actual miners that were using their pool and what was their incentives for it?

This company also had its own equipment that worked on this pool. Otherwise, it wouldn't have been profitable.
Only the mining pool is being closed, and they'll probably redirect the rest of their equipment to other pools they recommended. I didn't think that maintaining their pool was so expensive that the company decided to close it.

[stompix]

SBI crypto is a mining company that controls 2% of the total mining hashrate that exists on Bitcoin network,

Nope, they don't!

This company also had its own equipment that worked on this pool.

Source for this?
SBI Holdings is a publicly traded company; if they did go all the way to mention crypto 55 times in their financial presentations:
https://www.sbigroup.co.jp/english/investors/disclosure/presentation/
I have a feeling they would have mentioned mining revenue, especially since they would be committing securities fraud by not releasing those in the financial report!

A better question is, who are the actual miners that were using their pool and what was their incentives for it?

Decentralization? 

[FP91G]

This company also had its own equipment that worked on this pool.

Source for this?
SBI Holdings is a publicly traded company; if they did go all the way to mention crypto 55 times in their financial presentations:
https://www.sbigroup.co.jp/english/investors/disclosure/presentation/
I have a feeling they would have mentioned mining revenue, especially since they would be committing securities fraud by not releasing those in the financial report!

SBI Holdings owned mining equipment that was located in Russia. The company sold its equipment in Russia, but I have read about many other companies that sold their businesses only formally. In reality, they re-registered these businesses to other companies owned by their partners in Russia. Therefore, according to official reports, the company has no mining operations.

[Outhue]

This is incomplete information, SBI is a mining pool, not a mining farm, and it won't matter if they have more hashrate than 21EH because people will only have to move their miners to another available pool so no hashrate will go off more than a minute or two., this is not something that can cause any panic or makes small miner to become happy, I want to solve a bitcoin block and I do hope that difficultly dumps very hard one day too sadly this isn't one of those event and it might never happen.

[FP91G]

This is incomplete information, SBI is a mining pool, not a mining farm, and it won't matter if they have more hashrate than 21EH because people will only have to move their miners to another available pool so no hashrate will go off more than a minute or two., this is not something that can cause any panic or makes small miner to become happy, I want to solve a bitcoin block and I do hope that difficultly dumps very hard one day too sadly this isn't one of those event and it might never happen.

It can take 10-15 minutes for the ASIC to start mining fully if no backup pool is specified.
Miner shutdowns in the US during the summer can cause a larger drop in hashrate, but the overall hashrate is still very high, preventing other miners from finding blocks on weaker mining equipment.

[stompix]

Source for this?

SBI Holdings owned mining equipment that was located in Russia. The company sold its equipment in Russia, but I have read about many other companies that sold their businesses only formally. In reality, they re-registered these businesses to other companies owned by their partners in Russia. Therefore, according to official reports, the company has no mining operations.

You do realize that the source you mentioned
- shows the opposite, with them selling their business in mining
- you still have no source for them owning any bitcoin mining gear
- you do need to realize financial reports for a public traded company need to cover all registered entities in which they hold a stake
- if the gear is owned by their partners...well... does that not make the gear not theirs?
.

[philipma1957]

Source for this?

SBI Holdings owned mining equipment that was located in Russia. The company sold its equipment in Russia, but I have read about many other companies that sold their businesses only formally. In reality, they re-registered these businesses to other companies owned by their partners in Russia. Therefore, according to official reports, the company has no mining operations.

You do realize that the source you mentioned
- shows the opposite, with them selling their business in mining
- you still have no source for them owning any bitcoin mining gear
- you do need to realize financial reports for a public traded company need to cover all registered entities in which they hold a stake
- if the gear is owned by their partners...well... does that not make the gear not theirs?
.

Bro I know people in the USA that own entire city blocks all on handshake deals.

So if a guy from Russia is talking about partners they very well  could be real and zero paperwork.

IF I gave you exact details about the properties in New York I would be putting myself at risk.

So maybe you take his word and pass it by as true.


I tend to think its true.. Based on people I know of in NY and NJ.

[stompix]

Bro I know people in the USA that own entire city blocks all on handshake deals.
So if a guy from Russia is talking about partners they very well  could be real and zero paperwork.
IF I gave you exact details about the properties in New York I would be putting myself at risk.
So maybe you take his word and pass it by as true.
I tend to think its true.. Based on people I know of in NY and NJ.

Phil, private dealings between individuals, this is not the case!
Are you telling me Tesla is going to rent showrooms from the mob and have them pay in unmarked bills delivered by some ice cream seller?
Or that Microsoft is buying GPUs from the black market through a hot dog company?

SBI Holdings is a multi-billion-dollar publicly traded company with 20k employees on both the Tokyo and Osaka exchanges; you're going to tell me they are negotiating with the Russian mafia for 30 million in revenue per year for this thing and are risking all by committing account fraud for those peanuts?
Like seriously?

It's one thing for shady individuals to have their private deals, I could easily believe the FSB or GRU have 100exahash in equipment or that some crown prince in the Emirates has 50 exahash of mining in his 10000 sqm garage alongside his Ferraris, but this is a public company that gets audited!

[philipma1957]

Bro I know people in the USA that own entire city blocks all on handshake deals.
So if a guy from Russia is talking about partners they very well  could be real and zero paperwork.
IF I gave you exact details about the properties in New York I would be putting myself at risk.
So maybe you take his word and pass it by as true.
I tend to think its true.. Based on people I know of in NY and NJ.

Phil, private dealings between individuals, this is not the case!
Are you telling me Tesla is going to rent showrooms from the mob and have them pay in unmarked bills delivered by some ice cream seller?
Or that Microsoft is buying GPUs from the black market through a hot dog company?

SBI Holdings is a multi-billion-dollar publicly traded company with 20k employees on both the Tokyo and Osaka exchanges; you're going to tell me they are negotiating with the Russian mafia for 30 million in revenue per year for this thing and are risking all by committing account fraud for those peanuts?
Like seriously?

It's one thing for shady individuals to have their private deals, I could easily believe the FSB or GRU have 100exahash in equipment or that some crown prince in the Emirates has 50 exahash of mining in his 10000 sqm garage alongside his Ferraris, but this is a public company that gets audited!

Feel free to believe that. Its okay.

I have seen many deals in many places including fortune 500 companies.

Some times a rogue employee or an entire office goes rouge.

And the deals can be small for a 20 billion dollar company but not for a few of its employees.

ie the office in Wilmington Delaware has 11 people and the top three guys are doing a side deal.

They only earn 200k each so a 5 million dollar deal on the side is very tempting to them.

I won’t even get into the concept of moles from other companies that got hired by a company with 20,000 employees.

i would be fairly confident that the odds of bad employees out 20,000 works is a mortal lock.

As for moles less certain.

[FP91G]

Source for this?

SBI Holdings owned mining equipment that was located in Russia. The company sold its equipment in Russia, but I have read about many other companies that sold their businesses only formally. In reality, they re-registered these businesses to other companies owned by their partners in Russia. Therefore, according to official reports, the company has no mining operations.

You do realize that the source you mentioned
- shows the opposite, with them selling their business in mining
- you still have no source for them owning any bitcoin mining gear
- you do need to realize financial reports for a public traded company need to cover all registered entities in which they hold a stake
- if the gear is owned by their partners...well... does that not make the gear not theirs?
.

There are Chinese and Korean companies selling cars in Russia. Under threat of sanctions, these companies have officially ceased operations in Russia long ago, but their cars are sold under a different brand name, and their reports contain no mention of business in Russia. American companies also operate under this scheme. I'm telling you the facts, but I don't know how it works legally.

[stompix]

~

Feel free to believe that. Its okay.
I have seen many deals in many places including fortune 500 companies.
Some times a rogue employee or an entire office goes rouge.
And the deals can be small for a 20 billion dollar company but not for a few of its employees.
ie the office in Wilmington Delaware has 11 people and the top three guys are doing a side deal.

Phil, in every single of those examples, it's not the company doing so!
If it's a department, a guy, the janitor that does so, it's not SBI Holdings!

You're forgetting that I am from Eastern Europe, I lived through communism. What you think of as corruption was the normal life for us, I did shady stuff too, I crossed the border with bags of cash, buying agricultural equipment for the entire village from Belarus I sold the used one as scrap garbage on paper for cash in Bulgaria and Romania!
But never in 10 years have I tried to even once fudge the papers for one euro when it came to the contracts with Aldi or BASF or any company.

There are Chinese and Korean companies selling cars in Russia. Under threat of sanctions, these companies have officially ceased operations in Russia long ago, but their cars are sold under a different brand name, and their reports contain no mention of business in Russia. American companies also operate under this scheme. I'm telling you the facts, but I don't know how it works legally.

Volkswagen is not selling cars in Russia under the Matushka brand, nor is Tesla under Energoatom.
Those are dealers that do so, just like companies sell Nvidia GPUs to China without Nvidia knowing.

Anyhow, no matter through which channel they operate, it's not their equipment anymore!
As I said above with the Belarus example, I know of millions in equipment being quasi-smugled into EE this way before 2022, you know how many zeros on top zero is nowadays?
This is the same with Japan, they would have be to be out of their mind to do something like this for what is literally pennies, their whole revenue is less than what the board of directors and the CEO is getting paid in a year!


2.93 cents per th/s on at least <2021 equipment..
Isn't it way more probable they sold the equipment to local miners while having them mine still at their pool, the ones buying it are shutting down and they told them so and so the pool doesn't make sense at all anymore?

Doesn't pure economics make more sense?

[FP91G]

There are Chinese and Korean companies selling cars in Russia. Under threat of sanctions, these companies have officially ceased operations in Russia long ago, but their cars are sold under a different brand name, and their reports contain no mention of business in Russia. American companies also operate under this scheme. I'm telling you the facts, but I don't know how it works legally.

Volkswagen is not selling cars in Russia under the Matushka brand, nor is Tesla under Energoatom.
Those are dealers that do so, just like companies sell Nvidia GPUs to China without Nvidia knowing.

Anyhow, no matter through which channel they operate, it's not their equipment anymore!
As I said above with the Belarus example, I know of millions in equipment being quasi-smugled into EE this way before 2022, you know how many zeros on top zero is nowadays?
This is the same with Japan, they would have be to be out of their mind to do something like this for what is literally pennies, their whole revenue is less than what the board of directors and the CEO is getting paid in a year!


2.93 cents per th/s on at least <2021 equipment..
Isn't it way more probable they sold the equipment to local miners while having them mine still at their pool, the ones buying it are shutting down and they told them so and so the pool doesn't make sense at all anymore?

Doesn't pure economics make more sense?

Volkswagen is also made in China. It's now easy to buy a Chinese Volkswagen in Russia. I see a lot of these cars on the roads with Chinese characters on the back.
Russia ranks second in the world for mining because electricity is very cheap here, and even equipment older than 5 years is profitable.You're writing about the economy, but employees of large mining locations see representatives of foreign companies there. These representatives probably came for a tour and changed their minds about leaving.