Canada’s Fortress Blockchain Records $1.16 Million Loss In Q3 For Crypto Mining Business
The Canadian Bitcoin mining giant Fortress Blockchain registered a loss of $1.16 million in the third quarter of 2018. In the previous quarter, the company lost $202,000.
This shows that the bearish price action in virtual currencies is affecting the whole crypto market. The information was released by Fortress Blockchain Corp in a press release on November 28.
The company listed shares on the TSX Venture Exchange back in August. At the same time, it was able to sell 179.8 BTC for $1.13 million dollars during the three months. Each of the coins was sold at an average price of $6,605. At the same time, 83 BCH coins were sold for $35,300.
Fortress Blockchain was not able to keep mining such a large number of virtual currencies. Indeed, it mined 64.5 Bitcoin and 52 Bitcoin Cash and sold them for lower prices compared to the beginning of the year.
The revenue from mining operations declined 37 per cent and reached $463,900 after reaching $741,000 in the second quarter.
The company informed that it faced several challenges due to a market that has been in a bear trend since the beginning of the year. Additionally, it is possible to see that there was an increase in the hash rate that affected the difficulty rates, which reached an all-time high difficulty.
Aydin Kilic, Chief Executive Officer and Co-Founder of Fortress, commented about Bitcoin prices and the difficulty of the network:
“The industry has gone through a corrective phase where mining difficulties are at an all time high while Bitcoin prices have declined. At press time, we have noticed the mining difficulty for Bitcoin has significantly decreased. However, this has been outpaced by a significant decline in the price of Bitcoin.”
There were some reports that show that several mining companies in China couldn’t afford the price decline in virtual currencies. This is the effect that falling prices and an increase in the difficulty rate had on the mining industry.
Kilic informs that the 2MW Flagship Facility is still operating at a positive mining margin. According to Kilic, the facility produces $750 per day with a Bitcoin price of $3,824 and a difficulty at 6.65E12.
During this corrective phase, the firm was also able to streamline operations and improve how they handle the company. The efficiency of its operations has also improved, allowing the firm to record an average of 14% less power consumption from the S9 mining hardware that is measured on its official site.
Fortress Blockchain Corp operates in North America in green energy regions. Fortress resources are dedicated to achieving peak operational efficiency in industrial scale Bicoin mining.
The situation that is currently living this mining company is similar to the one experienced by other mining firms all over the world. It will be good for the industry to have higher prices or reduced difficulty.