Canadian miners bitcoin was less than after the announcement of the closure of the HyperBlock. Reportedly, the company, which was one of the largest operators of bitcoin mining is forced to curtail activities on the background of reducing by half the reward for mining a block of bitcoin and the high cost of electricity.
Halving of bitcoin has caused the closure of HyperBlock
According to the Missoulian, the closure HyperBlock, the company warned in a press release last week. It said, in particular, about the decision to close a 20-megawatt data center in Missoula. According to information, the company that deals with bitcoin mining told investors that having affected the profit HyperBlock.
The event reduced the company’s profit doubled for any extracted block. HyperBlock complained about this development, saying that the reward of bitcoin, the price of bitcoin network gestreut and the inability to find another supplier of electricity has meant that its operations became uneconomical.
May 13, the company noted that he is looking for another supplier of electricity, noting that Energy Keepers Inc., which supplies energy until now, suddenly decided to end their long term contract. If you can not find another electric company, then you have to stop Mininova activities, the company said.
After termination of the contract with the electricity company of bitcoin miner stated that financial advisors are studying the different alternatives of electricity supply, as well as on the best funding strategy to determine whether they can get back to business.
HyperBlock initiates a petition for bankruptcy
However, it turned out that the happy end will not be because the Board of the company decided to close HyperBlock completely. The company has acknowledged that it cannot meet its financial obligations, therefore, they have started bankruptcy proceedings.
This development has led to the fact that several independent managers of mining companies have filed a letter of resignation immediately after the decision on the closure of the HyperBlock.