Bitfarms on Monday announced that the move is temporary in line with government guidance to help contain the spread of coronavirus. The crypto mining firm has also implemented permanent measures to reduce overhead costs to maintain the long term viability.
Bitfarms expect to reduce expenses by 20 to 25%.
Bitfarms CFO John Rim said that once fully implemented over the next several weeks, they expect the cost-saving measures to reduce the monthly general and administrative expenses by approximately 20 to 25%. John Rim further said that cost-cutting measures would help the firm withstand volatility in mining economics and help remain profitable through the long-term, including potential hurdles relating to the upcoming Bitcoin halving. Bitcoin mining firms are suffering as the hashrate plunged last month.
Bitcoin halvening event is scheduled for the next month.
The highly anticipated bitcoin halvening event is scheduled to occur next month. After this event, the block reward for each block mined would be reduced from 12.5 BTC to 6.25 BTC. It is unclear how many people were let go by the crypto mining firm and what is the current headcount. According to the announcement, Bitfarms operates five computing centers in Quebec, Canada, powered by clean and competitively priced hydroelectricity.
Bitfarms has maintained an average daily hashrate of approximately 750 petahash per second, since March 19. The CEO of Bitfarms and chief strategy officer Emiliano Grodzki said that their scale and quality of operations has allowed them to continue to generate positive cash flow in these difficult times.