The Canadian Bitcoin miners have shortened in number, following the report of HyperBlock shutdown. The company is reportedly one of the biggest Bitcoin mining operators, however, it has been forced to close down shop amid the slashed reward for mining Bitcoin and electricity supply.
Bitcoin Halving caused HyperBlock shutdown
According to a report by Missoulian, HyperBlock shutdown follows the company’s press release last week that the board has decided to close its 20-megawatt data center in Missoula. Per the report, the Bitcoin mining company told it’s investors that HyperBlock’s earnings have been affected by the recent halving.
The event had decreased the company’s earning by half for any block mined. HyperBlock lamented on the development, saying that Bitcoin’s reward, the Bitcoin pricing, it’s network hashrate, and the inability to find another electricity supplier has caused its operations to become uneconomical.
On May 13, the company mentioned that it was looking to secure another electricity supplier, given that Energy Keepers Inc., which has been there energy provider, decided to stop their long-term contract the next day. If it fails to find another electricity company, then it will have to halt mining activities, the company said.
After the electricity company terminated the contract, the Bitcoin miner said it’s financial advisors are working to explore another electricity supply alternative, as well as a better financing strategy to determine whether or not it would still return to business.
HyperBlock initiates bankruptcy proceedings
However, it appeared that things could not go as planned as HyperBlock shutdown was finally decided by the company’s board. The company admitted that it was unable to maintain it’s financial obligations, hence, they went on making bankruptcy proceedings.
This termination, combined with the impact of the recent Bitcoin algorithm halving, which cut the Company’s mining rewards in half, and the Company’s generally deteriorating working capital position, have made it unable and uneconomical to continue operations.
Meanwhile, about two independent executives of the mining company reportedly filed for resignation immediately after the HyperBlock shutdown decision.