Bitfarms, a blockchain infrastructure company running one of the largest North America-based mining operations, is cutting staff members. The firm cited the ongoing economic and social turmoil caused by the COVID-19 pandemic.
Coronavirus Hits Bitcoin Mining Firm In North America
The unexpected outbreak of the COVID-19 harmed people’s health, financial markets, economies, and businesses. Numerous companies had to take radical measures to endure, and the cryptocurrency field is not exempt.
Based in Toronto, Canada, Bitfarms is amongst those businesses. It’s a cryptocurrency mining firm operating in North America. According to a recent press release, however, it had to take “temporary steps to reduce staffing in line with government guidance.”
It also had to enforce other permanent procedures to ensure its survival during this time of uncertainty. Company’s Chief Financial Officer, John Rim explained:
“Once fully implemented over the next several weeks, we expect the cost-saving measures to reduce our monthly general and administrative expenses by approximately 20 to 25%.
Seeking cost efficiencies is consistent with our business model and thesis that efficient miners like Bitfarms will be best positioned to be able to withstand short-term volatility in mining economics and remain profitable through the long-term, including potential challenges relating to the upcoming Bitcoin Halving.”
Bitfarms is certainly not the only cryptocurrency-related business to feel the adverse effects of the novel virus. As Cryptopotato reported recently, the Israeli-based blockchain video content media, BlockTV, curtailed its workforce by almost 80%.
Mid-March Panic Sell-Off And The Consequences
The press release stated that the Canadian mining company managed to sustain an average daily hash rate of 630 petahash per second (PH) from March 12th to March 19th. During those dates, Bitcoin’s price plunged by 50% to below $4,000 at one point and was slowly recovering. After March 20th, BTC stood mostly above $6,000, and Bitfarms maintained an average hash rate of 750 PH.
Amid the price slumps, miners had to switch off equipment to cut down the costs. To make it easier for them to complete the work and receive their rewards, Bitcoin went through one of the most significant difficulty adjustments in its history later that month.
Bitfarms interim CEO and CSO, Emiliano Grodzki also commented on the network difficulty:
“Cryptocurrency mining is essential to the Bitcoin blockchain, and given the self-incentivized model upon which Bitcoin mining works, we firmly believe that the combination of network difficulty and Bitcoin price will continue to adjust to ensure profitability for mining for the largest and most efficient miners.”
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Source: Crypto Potato