The recent weeks had witnessed a significant decline in the price of Bitcoin (BTC), with some analysts correlating it to the crash of the global financial market due to coronavirus outbreak. Despite showing some positive changes in the recent days, it seemed that it wasn’t enough for the California-based crypto mining firm, Digital Farms. Notably, DPW Holdings, the parent company of Digital Firms, had already filed closure and down-scaling documents with the United States Securities and Exchange Commission (SEC) last March 18.
As per the filing, the crypto mining firm’s operations had been severely hit by the global ramifications of COVID-19. Digital Firms believed that the pandemic also catalyzed the consecutive drops in the price of BTC, which forced them to decide on shutting down indefinitely. The devastating price decline started in February, with the level coming from $10,000 to $4,000 earlier this month. At the time of publication, Bitcoin is priced at $6, 660.
Back in January 2018, DPW purchased Super Crypto Mining, which covers an area of 617,000 square feet. Notably, the facility has a 28-megawatt initial capacity, which can extend up to 300 megawatts. In May, the company did some rebranding and changed the name to Digital Farms. As per the annual SEC filing, Digital Farms had an initial funding of $5 million courtesy of institutional investors. The money was then used to obtain thousands of Antminer S9 from crypto mining equipment giant Bitmain. The firm’s operations focus on mining Bitcoin, Ether (ETH), and Litecoin (LTC).
In the 2019 report, DPW disclosed that Digital Farms managed to earn$1.67 million in revenue, quite a far cry from the parent company’s $27 million. To improve the figures, DPW plans to roll out cloud mining services. They are also looking to mine the top 10 digital currencies using the market cap as the basis. However, with the recent turn of event, the industry has no choice but to wait for the next announcement from the company.