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Mining farm fires employees due to coronavirus.

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Mining farm fires employees due to coronavirus.

Mining farm fires employees due to coronavirus.
CONTENT

  • Canadian mining farm cuts staff

  • The economic fallout from the coronavirus hits the cryptocurrency industry

  • The company strives to cut costs in order to survive

International consortium of news organizations developing transparency standards.

Bitfarms, blockchain company that operates one of North America’s largest mining farm, is forced to lay off staff.

The economic and social crisis triggered by the coronavirus (COVID-19) epidemic has put the company in a difficult position, the official statement says..

Mining farm fires employees due to coronavirus.

Coronavirus has hit a Canadian mining farm

The outbreak of a new virus has hit people’s health, damaged many companies, financial markets and entire economies. Companies in various industries were forced to take extreme measures, and the cryptocurrency industry did not bypass the crisis..

In particular, the Bitfarms mining farm located in Toronto, Canada was among the victims. In a statement released, the company was forced to temporarily lay off staff in line with government recommendations..

In addition, the farm has taken a number of other steps to stay afloat in times of uncertainty. According to the company’s CFO John Rome, the planned measures will be fully implemented over the next few weeks. They are expected to help save 20-25% monthly general and administrative expenses.

“Finding effective solutions is consistent with our business model. Efficient miners like Bitfarms will be able to weather the short-term volatility in the industry and maintain profitability in the long term, ”he added..

Rome also noted that halving is ahead of us. Bitcoin halving is cutting the number of new coins created and earned by miners by half. This happens about every four years and … More bitcoin, which could also increase the pressure on the mining industry.

Bitfarms, meanwhile, is far from the only cryptocurrency company to experience the effects of the new virus. Earlier, the editorial staff of BeInCrypto reported that Bitcoin.com could lay off 50% of its employees in anticipation of halving.

Consequences of the March sale

Mining farm fires employees due to coronavirus.

The press release states that the Canadian mining company maintained an average daily hash rate of 639 petahashes per second (PH) between March 12-19. These days, Bitcoin lost 50% of its value and fell below the $ 4,000 mark, after which a slow recovery process began. After March 20, BTC held mostly above $ 6,000, while Bitfarms maintained an average hash rate of 750 PH.

Due to falling prices, many miners have been forced to shut down some of their equipment to keep costs down. This led to the largest difficulty adjustment in the history of the Bitcoin network. This process regulates the conditions for miners and helps them to adapt..

Commenting on the difficulty of mining, the acting CEO of Bitfarms noted:

“Cryptocurrency mining is an integral part of the bitcoin ecosystem. Given the self-regulation mechanism existing on the network, we are confident that the complexity of mining and the price, together, will provide profitability for the largest and most cost-effective players. “

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