There were several negative influences at once, which the company did not stop. The stagnation of the price of Bitcoin and its subsequent slight increase was only temporary, and after April the value of Bitcoin continued downwards, today to about 19 thousand USD. The profitability of mining is mainly determined by two factors, earnings (ie the price of Bitcoin) and costs (primarily the price of energy). And while the former decreases, the latter rises, which is exactly what any business does not want. Added to this were delays in the start-up of a new 280MW mining farm in Texas, which was supposed to start up in April (which would have coincided with a period of mild recovery), but was put into operation later, at the time of another significant slump.
The company thus owes its creditors about $500 million, while Chapter 11 bankruptcy allows the company to continue operating and try to create a plan to pay off creditors and operate more efficiently. Company CEO Dave Perrill has stepped down, but will remain at the helm of the company. Major partners of the company are, for example, the companies Compass Mining and Marathon Digital, which have already made it known that their operation will continue as before.
Source: Svět hardware by www.svethardware.cz.
*The article has been translated based on the content of Svět hardware by www.svethardware.cz. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!