Concerns loom for one of Canada's biggest bitcoin miners
January 7, 2020, 7:00AM EST · 5 min read
- Bitfarms, one of Canada’s largest bitcoin mining companies, currently operates 5 facilities with 813 PH/s of installed computing power (~0.8% of the network hash rate)
- By utilizing a $20 million secured loan, the company purchased over 13,000 new generation miners
- Due to strict covenants and a high interest rate on the loan, Bitfarms will need higher levels of operating cash flow in order to pay the outstanding balance at maturity (scheduled for 2021)
- Coupled with several recent departures from its management team and noise complaints from locals, Bitfarms has much to worry about as the bitcoin reward halving approaches.
As we approach the halving – the term used to describe the drop in the bitcoin per-block subsidy from 12.5 BTC to 6.25 BTC, scheduled to take place this spring – it becomes increasingly important to monitor the financial strength of the mining industry. With the majority of the bitcoin hash rate existing in China, bitcoin […]
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