The COVID-19 pandemic has hit another cryptocurrency mining firm Bitfarms. The firm is reducing staff members citing the currently ongoing economic and social turmoil caused by the Coronavirus epidemic.
Bitfarms is basically a blockchain infrastructure company based in Toronto, Canada which is currently operating one of the largest cryptocurrency mining operations in North America. In a recent press release of 6th April, the crypto mining firm has provided an update regarding the impact of COVID-19 and cost-efficiency measures.
A Temporary move along with the cost-saving measures
It is a temporary move taken by the company to cut staff and is in line with the government guidance according to the Monday press release. However, the company is enforcing permanent cost-saving measures to reduce and maintain costs.
The Chief Financial Officer (CFO) of Bitfarms John Rim says that these cost-saving measures will help to lower monthly general and administrative expenses. John said:
“Once fully implemented over the next several weeks, we expect the cost-saving measures to reduce our monthly general and administrative expenses by approximately 20 to 25%…Seeking cost efficiencies is consistent with our business model and thesis that efficient miners like Bitfarms will be best positioned to be able to withstand short-term volatility in mining economics and remain profitable through the long-term, including potential challenges relating to the upcoming Bitcoin Halving.”
The company is taking these temporary steps to help the government to combat the spread of the COVID-19 pandemic.
The interim CEO and CSO of Bitfarms, Emiliano Grodzki also talks about the network difficulty and says, “Cryptocurrency mining is essential to the Bitcoin blockchain, and given the self-incentivized model upon which Bitcoin mining works.”
Where the Coronavirus outbreak is affecting other financial markets, economies, and several other businesses, the field of cryptocurrency is not an exception. We have seen various crypto firms and conferences closing down their work because of this pandemic in the past months and several others have taken safety measures to fight against the coronavirus epidemic.