Bitcoin Price Decline Prompts US Mining Firm to Shut Down ‘Indefinitely’

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Digital Farms, a California-based cryptocurrency mining firm, is placing its operations on maintain due to the latest decline in bitcoin’s (BTC) value.

On March 18, the miner’s mum or dad firm, funding agency DPW Holdings, filed an replace with the U.S. Securities and Alternate Fee (SEC) on its enterprise associated to the COVID-19 pandemic, which has been closely affecting firms and markets globally. Amongst different closures and down-scalings, its mining enterprise is being shuttered. 

“Digital Farms’ cryptocurrency mining operations have been suspended indefinitely, primarily due to the sharp decline available in the market value for bitcoin,” the corporate wrote.

Final Could, DPW introduced Digital Farms, previously Tremendous Crypto Mining, had obtained a 617,000 sq. foot facility within the U.S. to arrange operations with “speedy entry to 28 megawatts of energy and an infrastructure to help up to 300 megawatts.”

Tremendous Crypto Mining was acquired by DPW in January 2018 and later re-branded as Digital Farms. In accordance to DWP’s annual report filed with the SEC in April 2019, the mining operation had began off by borrowing $5 million from two institutional buyers and shopping for a thousand of Bitmain’s Antminer S9 mining machines. Mining of bitcoin, litecoin (LTC) and ether (ETH) underneath the brand new proprietor kicked off in February 2018.

The corporate’s first yearly income from crypto mining was $1.67 million, a small portion of DPW’s whole $27 million income, in accordance to the 2019 report. The corporate had been planning to mine the highest 10 cryptocurrencies by market capitalization and likewise supply cloud mining companies.

Discussing its situation underneath the coronavirus pandemic, DWP mentioned within the newest submitting: “Due to the unprecedented market situations domestically and internationally, and the impact COVID-19 has had and can proceed to have on the Firm’s operations and monetary efficiency, the extent of which isn’t at the moment recognized, the Firm is briefly suspending steering for 2020.”

Bitcoin’s value has been dropping since February from ranges above $10,000, making it laborious for the mining business to return a revenue. On March three, wider market turmoil introduced on by the rising coronavirus outbreak prompted a crash to under $four,000. Costs have since regained poise and are round $6,660 at press time.

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