Genesis Mining is Forcing Clients to Choose Between Two Options
The “largest cloud mining company on [the Bitcoin] market”, Genesis Mining, offers investors two options: either they upgrade to a premium subscription or conclude contracts, as reported on 16 August.
Founded in 2014 by Marco Streng, Jakov Dolic, and Marco Krohn, the Iceland-based cloud mining Genesis Mining requires clients to upgrade to a five-year subscription or else stop the collaboration. The company pointed out in the blog post that it will stop partnerships with companies that do not manage to earn higher spending in about two months because of the imbalance in the crypto market. Investors have only two options.
Because of the bearish market, mining is a costly activity, Genesis Mining wrote. Even if spending remained roughly the same, cryptocurrencies’ values have dropped considerably lately, especially last weekend after the crypto market lost $ 43 million.
Now, Genesis Mining’s clients have to upgrade to a five-year contract without the possibility to conclude the contract before the deadline. However, in order to support customers, the company has decreased the commission for every trillion hashes per second (TH/s) from $ 285 to $ 180.
The company elaborated:
“Unfortunately, bitcoin went into a downward trend around January. This trend combined with the heavily rising difficulty around April and May reduced mining outputs even further. As a result, some user contracts are now mining less than the daily maintenance fee requires to be covered, and thus they entered the 60 days grace period, after which open-ended contracts will get terminated.”
Genesis Mining is not the first cloud mining to think twice about the company’s future. Back in June, Hashflare revealed that it was suspending its Bitcoin mining activities and concluded contracts with clients because of “the payouts were lower than maintenance for 28 consecutive days,” as written on its official Facebook page.