Birfarms, a cryptocurrency mining outfit based out of Canada, would be trimming its staff. This is due to the coronavirus pandemic’s effects on its operations.
The company made the decision known in an update published earlier this week, explaining that it will be making some adjustments to the coronavirus amid both its economic and social effects.
Focusing on Sustainability and Profits
Via the update, the company explained to stakeholders and community members that it had optimized its operations to maximize mining power over the past few weeks. As a result, it’s been able to maintain a daily hash rate of about 750 PH effectively.
Thanks to all this, Bitfarms has now managed to stay cash flow positive and should be able to weather the storm and continue its operations. However, the firm is also looking to stay in compliance with government guidelines at this time, and they believe that streamlining their staff is the perfect way to achieve that.
While the company didn’t share any details on the furlough process or how many people will be mandated to take part, it emphasized that this is the perfect way to help limit the virus’s spread and maintain its operations at the same time.
The company also touched on some of the steps it’s taken to reduce overall costs generally. For now, it’s targeting cutting operating costs by 20 to 25 percent.
“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.” Chief financial officer John Rim added.
The Coronavirus’ Effects in Blockchain and Mining Firms
The company’s policy is coming at a time when crypto and blockchain firms around the world continue to deal with the far-reaching effects of a global pandemic. Late last month, Riot Blockchain, a mining firm listed on the NASDAQ, explained in its Form 10-k report with the Securities and Exchange Commission that the virus could affect blockchain companies in several ways.
The company explained at the time that the virus would affect its international customers, and in time, its core business will take a hit as well. It also outlined that the virus has forced it to face several disruptions in the past. Most importantly, workers have been restricted in their movement and haven’t been working optimally.
Riot explained that it has six full-time employees, with three consultants helping to manage its rigs. However, while the risk of the virus to its workers in a warehouse might be limited, there could still be drastic effects on third-parties due to border closures and other physical restrictions.
The company also pointed out that it might not be able to repair a lot of obsolete mining equipment and components for a while. Finally, it conceded that a prolonged lockdown, as well as market and business closures, will adversely affect its operations. Since authorities haven’t designated the cryptocurrency and blockchain industry as an essential one, the firm remains at the mercy of the virus.