Popular cloud mining provider Hashflare announced today, July 20, that all active Bitcoin mining contracts have been terminated. The announcement sent to customers via Facebook and e-mail states that bitcoin mining is no longer profitable for the company.
Bitcoin mining ends soon
For a few weeks, Cloud Mining Service customers have reported that they could not make any cash outings, as maintenance costs would be partially higher than revenues or would be so low that the minimum withdrawal amount would not be met.
In addition, Hashlare raised the threshold for withdrawals to 0.05 BTC and 0.1 ETH, so that it was hardly possible for customers with small contracts to reach a payable amount. It has now come true, which many customers have already feared: Hashflare makes use of an opt-out clause and terminates the BTC mining contracts immediately.
The communication states:
As you know, the last few months have been a difficult time for the cryptocurrency market, which has also affected the operation of our service.
We have made every possible effort in order to resolve the problem that has arisen – for instance, we have considered a variety of technical solutions, which would have allowed us to lower expenses related to maintenance and electricity. However, due to the general instability of the market, the actions we have taken could not significantly influence the current situation.
For over a month our users encountered a situation when the payouts were lower than the maintenance fees, resulting in zero accruals to the balance. As of 18.07.2018, the payouts were lower than maintenance for 28 consecutive days.
BTC mining continues being unprofitable, in light of which we would like to inform you that on 18.07.2018 we were forced to start disabling SHA hardware and today, on 20.07.2018, stop the mining service of active SHA-256 contracts in accordance with clause 5.5 of our Terms of Service, which are required to be accepted when creating a purchase and are the basis of concluding the contract.
We expect that the cryptocurrency market situation will stabilize in the nearest future and we will be able to offer our users new advantageous solutions.
We will continue to inform you about any changes. Stay tuned for updates!
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