DPW Temporarily Shuts Mining Business After Bitcoin Price Fall Below Threshold
DPW Holdings mining company, Digitial Farms, recently announced to put its operations on hold for a certain period of time. The California-based cryptocurrency mining company, while giving the reason, stated that on March 13, 2020, the price of Bitcoin falls below $4,000 threshold, therefore, the company has decided to stop the services for some time.
DPW Business UpdateOn March 18, 2020, the parent company of Digital Farms filed a business update with the United States Securities and Exchange Commission (SEC), stating that in response to COVID-19 pandemic the firm has decided to shut its few businesses and also make some changes in other businesses.
A report suggests that because of COVID-19 the DPW has decided to make some in its businesses, but the investment firm decided to shut Digital Farm because of Bitcoin’s price crash.
The update filed by DPW states, “Digital Farms' cryptocurrency mining operations have been suspended indefinitely, primarily due to the sharp decline in the market price for bitcoin”.
The report further states that before becoming DPW’s wholly-owned crypto mining subsidiary, Digital Farms was popular as Super Crypto Mining.
DPW developed its own mining hardware, AntEater, in collaboration with tech giants which is now being used by Digital Farms.
In May 2019, DPW announced that a 617,000 square foot facility in the US was procured by Digital Farms to set up operations there.
Mining Business Down Before HalvingThe investment firm decided to shut its mining business just before another halving event, which would take place in May 2020. During the halving event, the Bitcoin experience growth in its price. But this year some of the crypto players belive that Bitcoin price would remain stable after halving.
However, many of the crypto investors earlier stated that before halving the Bitcoin market would go up but it did not happen. Instead, the Bitcoin is experiencing a downward trend in March 2020.
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About The Author
Jyoti SinghGraduated from GGSIPU and did PG Diploma in English Journalism from IIMC. Last worked at Business News and Information Services Ltd. for more than one and a half years as a sub-editor.
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