Bitfarms Forced to Lay Off Staff, Cuts Expenses, and Optimize Crypto Mining Due to COVID-19
Canada-based and publicly listed blockchain infrastructure and mining company Bitfarms is at the moment reducing staff as a result of the economic and social effects brought by the coronavirus pandemic.
In an update from April 6, Bitfarms informed that it managed to maintain the average hashrate of about 750 PH per day since March 19, all because it optimized operations for its computing power to be maximized. According to the firm, this was very helpful as far as generating a positive cash flow during the current difficult times when crypto and traditional markets are in chaos.
Being in Line with Government Guidance
Bitfarms also mentioned that it remains viable in this crisis by temporary cutting staff so that it’s in line with government guidance. It aims to fight the coronavirus’s spread, but it didn’t provide any details on what arrangements it made with the workers being let go. In the same update, the firm talks about what it intends to do in order to reduce administrative costs and save as much as 20 to 25%. Here’s how Bitfarms’ chief financial officer, John Rim, commented the situation:
“Seeking cost efficiencies is consistent with our business model and thesis that efficient miners like Bitfarms will be best positioned to be able to withstand short-term volatility in mining economics and remain profitable through the long-term, including potential challenges relating to the upcoming Bitcoin halving.”
What’s Happening with Other Firms?
Recent reports say that there some mining firms are trying hard to overcome the market volatility brought by the coronavirus until now. However, earlier in March, Argo Blockchain, the mining firm listed on the London Stock Exchange, mined the most Bitcoin (BTC) ever in its own records. It also said operations at its sites in North America haven’t in any way been affected by the pandemic.
The Bitcoin halving from May this year is also mentioned in the update published by Bitfarms. The adjustment that will reduce by 50% mining rewards is going to be very challenging in terms of profits for the mining sector all over the world. Some other mining firms that have laid off staff because of the coronavirus are Bitcoin.com and Galaxy Digital. The former let go of 15% of its workforce globally, whereas the latter of 10%.