The cryptocurrency market rout in mid-March, which saw bitcoin’s price slide significantly in value, has strained bitcoin mining operations by slashing considerable revenue from the block rewards. Moreover, shipping delays from mining manufacturers have caused uncertainty and mining operations don’t know when next-generation miners will ship. The mining firm Hut8 has revealed in an earnings call that the company is worried about the aftermath of the coronavirus economy, the upcoming halving, and mining rig shipment delays.
Hut8 and Riot Blockchain Show Concerns Over Nonessential Business Mandates and Mining Rig Shipping Delays
The BTC halving is 28 days away and expected to happen on or around May 12, 2020. This means miners will see 50% of their revenue disappear because, after the event, they will only get 6.25 BTC per block in contrast to 12.5 coins per block. Furthermore, the market carnage that took place in mid-March shaved 30% off the price of BTC as well, making mining revenues quite slim. The price drop had caused a small capitulation of miners and BTC’s overall hashrate had lost roughly 45%. However, the hashrate has regained at least 90% of the hashrate back, as the overall hashpower today is around 120 exahash per second (EH/s). After the markets shuddered on March 12, otherwise known as ‘Black Thursday,’ the large mining operation DPW announced that the firm’s subsidiary mining business, “Digital Farms,” closed up shop “indefinitely.” Now the publicly traded companies Hut8 and Riot Blockchain have both revealed that the coronavirus economy is threatening mining operations.