Bonner bitcoin company ceases operations | National News

The Canadian company that runs the large bitcoin mining facility in Bonner has shut down completely and initiated bankruptcy proceedings.

HyperBlock Inc., based in Toronto, said in a series of press releases late last week that its 20-megawatt datacenter just east of Missoula is now offline and all cryptocurrency mining operations have ceased.

The publicly traded company (HYPR on the Canadian Stock Exchange) has been leasing a massive warehouse at the old Bonner mill site for the past few years.

In a press release on May 13, HyperBlock announced to shareholders that the Bitcoin algorithm “halved” on May 11, which “significantly reduced Bitcoin mining compensation rewards earned by the Company.”

The company said that algorithm halving occurs approximately every four years to create scarcity by limiting the number of bitcoin in circulation. The halving cut the company’s rewards for mining each block by half, HyperBlock said.

“The Company cautions that this has resulted in making its operations uneconomical, based on current Bitcoin pricing, overall network hashrate, and the Company’s ability to continue to access reliable, affordable power,” the press release stated.

HyperBlock also announced that its electricity provider, Energy Keepers Inc., indicated that it would terminate a long-term contract with HyperBlock effective on May 14. In the May 13 press release, the company said it would explore power supply alternatives and said an “inability to secure power would require it to pause or cease mining operations.”

A manager at the Bonner HyperBlock facility could not be reached for comment, nor could a company spokesperson at the headquarters in Canada.

Steve Nelson, a co-owner of the Bonner mill site, declined to comment on the situation. Missoula County officials have confirmed that they’re aware the company has ceased operations.

Energy Keepers Inc. is owned by the Confederated Salish and Kootenai Tribes, and distributes…

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