Hong Kong Crypto Exchange to Shut Down Its BTCC Pool Limited Mining Business
BTCC, the Hong Kong-based crypto exchange, has decided to shut its mining pool business for now. This means that BTCC Pool Limited, after being operational for four years, has decided to stop its operations.
The company has decided to shut down its business because of “business adjustments” reasons. According to the latest statement of the company, all mining servers will be shut down on November 15 and the operations will be finished for good up until November 30. All miners were asked to switch their hash power until November 15.
While this was a respectable pool, it was not a very important one. It accounted for only 1.1 percent of the Bitcoin hashing power in June, so it was far from being a big player in the industry. However, the company has been facing a crisis of sorts lately as the business was declining.
In fact, the hash rate dropped a lot in the last few months, which have created problems for the company and dropped to less than 1% the hash rate. It is believed by some experts that part of the reason why the company is shutting down this sector is because it is not a profitable as it once was because of the continuous bear market that the industry is facing.
The Story of The BTCC Pool Limited
This pool was created in 2014 as one of the several business verticals of BTCC and it worked alongside the Mobi wallet and the USD/BTC exchange offered by the company. The mining pool used to mine not only Bitcoin but also Litecoin, Super Bitcoin and Bitcoin Cash.
Before 2017 the company was known as BTC China and it was the longest running trading platform in the world, but it was banned from China in 2017, so the company had to change to Hong Kong and to make a relaunch of its services. These problems have taken a toll in the company.
Recently, in June, the company agreed to sell 49 percent of its equity to Value Convergence (VC) Holdings, a Hong Kong-based financial services company. The deal was reported to be around $17 million USD but no final value was revealed.