Genesis Mining, a hashpower hosting service, announced that some clients would soon have to upgrade to a five-year subscription in order to continue using their services to mine BTC. In a blog post, the Iceland-based company said it was forced to make these changes to avoid shutting down its operations.
According to the post, Genesis Mining will be ending contracts for clients who are not meeting the daily maintenance fee. The changes are expected to take effect after a grace period of 60 days.
Genesis Mining stated that the new changes are because of the ongoing decline in the cryptocurrency market. According to the company, mining at the current market prices is causing huge losses to the company especially due to high electricity cost and increased difficulty in mining the cryptocurrency.
“As a hashpower hosting service, we can only influence one out of the three main factors that determine mining rewards, and that is the infrastructure. We’ve always strived to deliver the best deals by deploying the most efficient technology available at the time. The market price of [BTC] and the mining difficulty are factors we cannot control,” the company said.
Since the fall of BTC prices in January, mining companies have been struggling to stay afloat. BTC mining became very difficult around April and May, which resulted in reduced mining output.
They added that all clients who wish to continue using their services would have to upgrade to a new premium account. In the new changes, clients will pay $180 for 1 TH/S. This is a drop from the current price which is $285. The upgrade also has reduced maintenance fee to $0.14 per day. Clients will also get into an open-ended five-year contract with no termination.
Genesis Mining is a company that sells BTC mining contracts. The Iceland-based company, which was founded in 2013, offers scrypt and SHA-256 mining.
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.