The CEO of Hut 8 Mining Group Andrew Kiguel said his firm was grappling with a vague timeline for the delivery of crypto mining machines to support its farms. He noted that the orders placed in February were expected to be delivered between March and April, and now the timeline has shifter entirely because of the ongoing global pandemic. Earlier, Riot Blockchain had also warned that the coronavirus outbreak would impact its business operations.
“Bitmain’s timetable for delivery is still unclear.”
CEO Andrew Kiguel said that a month ago, nobody thought these things would be an issue as the world is grappling with different supply chain issues like getting ventilators and masks around the world as opposed to bitcoin mining machines. China-based crypto mining machine manufacturer Bitmain had warned back in January that it would be forced to delay deliveries due to the coronavirus outbreak. Even though Bitmain has resumed its operations, its delivery timetable is still unclear.
Bitcoin mining firms concerned about halving.
Hut 8 Mining Group, a publicly-traded mining firm in the US, is also closely watching the upcoming bitcoin halving in hopes of appropriately scaling the size of its mining farm. The crypto mining firm is set to have a higher stake in the bitcoin market after starting its core operation in the middle of 2018 and acquiring new facilities to increase its mining power in 2019. According to its year-end report for 2019, the crypto mining firm had earned $58.6 million in revenue, up by 66% from the previous year.
The crypto mining firms are also depending on the price of bitcoin. This is the first time in the history of the leading cryptocurrency that it is heading into halving with the Relative Strength Index being at historically low levels. The halving event is scheduled to take place next month, and it would reduce the block reward from 12.5 BTC to 6.25 BTC.
