Bitmain, the leading producer of Bitcoin mining equipment, has unveiled an unprecedented compensation program to protect BTC miners from the volatile nature of the cryptocurrency market. In a bid to minimize the risks associated with Proof-of-Work (PoW) mining, Bitmain will activate the compensation program if the price of Bitcoin drops by 20% or more.
Under this program, Bitmain will reimburse purchasers of its S19J XP flagship mining rigs if there is a significant drop in Bitcoin’s price. For every trillion hashes mined by Bitmain’s hardware, the company will distribute $1.89 in compensation. This compensation program will remain active for three months from the time Bitcoin mining hardware is purchased.
Notably, even existing users of Bitmain’s S19J XP will be eligible to claim rewards in the event of market instability. This announcement was made by the Bitmain team on WeChat, according to Chinese cryptocurrency journalist and insider Colin Wu.
The past week has seen Bitcoin’s price decline by 12%, highlighting the need for such compensation programs. If the price plummets again, the affected miners will be able to receive the compensation they are entitled to from Bitmain.
The Antminer S19J XP stands out as one of the most powerful Bitcoin mining hardware devices currently available. With a hash rate of 151 THashes per second and energy consumption of 21.5 Joules per TH, this flagship model is priced at nearly $5,000 on Bitmain’s official website. However, it is important to note that there are currently no rigs in stock, and the first devices will only be available in the fourth quarter of 2023.
In a separate development, Tether, the issuer of the popular stablecoin USDT, has reaffirmed its commitment to dominate the Bitcoin mining segment. Tether recently introduced Moria, a Bitcoin mining orchestrating software that combines elements of artificial intelligence (AI) and the Internet of Things (IoT).
These announcements from Bitmain and Tether reflect the ongoing efforts within the cryptocurrency industry to mitigate the risks associated with Bitcoin mining and ensure a more stable and profitable environment for miners. As the market continues to evolve, offering compensation programs and innovative mining software can help protect miners from the volatility that often accompanies the world of cryptocurrencies.