Riot Blockchain: COVID-19 Pandemic Could ‘Significantly Disrupt’ Crypto Mining Operations
U.S crypto mining giant, Riot Blockchain, has stated in its annual 10-K report to the SEC that the novel Coronavirus poses a serious operational threat in its business continuity. Filed on March 25, the report highlights two main functions that fall under the ‘worst case’ business scenario section.
The NASDAQ listed firm claims that it is yet to be categorized as an essential business provider in any jurisdiction on lockdown. Given this situation, Riot blockchain workers have been forced to work from home hence a challenge in supporting their mining rig clients. In addition, some of its supplies are held up in borders following the looming uncertainty globally. The report partly reads;
“If we are unable to effectively service our miners, our ability to mine bitcoin will be adversely affected as miners go offline,”
Despite Riot’s 4000 Bitmain S17 Pro Antminer capacity, the firm is also facing unique existential challenges in a market that gained momentum just the other day. In its report, Riot noted that they could not predict the long-term effects of COVID-19 but emphasized on a need to act quickly;
“If not resolved quickly, the impact of the novel coronavirus (COVID-19) global pandemic could have a material adverse effect on our business.”
The situation with Riot blockchain is not unique from what was happening with its Chinese counterparts two months ago. Abe Yang, the COO of PandaMiner, cited similar challenges to Riot’s back in February when China was still the hardest hit region by Coronavirus (Covid-19). As more parts of the world go on lock down, this trend is expected to increase across all industries globally.