Bitcoin down, CEO resignation, eviction and downtime: the drama of cryptocurrency miners

As if the general crisis in the cryptocurrency market were not enough, two American companies in the bitcoin mining sector face extra problems. While Compass Mining lost its board and was evicted from its mining center, located in the state of Maine, Marathon Digital has 75% of its operation stopped in Montana due to a power outage.

Most of the problems are linked to the fall of the crypto market in general, with emphasis on Bitcoin (BTC), which fell for the third day in a row, with a price this Wednesday (29) at US$ 20,000 (R$ 105,000), and Ethereum (ETH), which is approaching price levels four years ago, is currently worth $1,100 (BRL 5,800).

With little cash in boxes, many mining companies are having to sell their cryptocurrency stashes. When even that stock no longer pays the costs, operational problems begin.

Read too: Bitcoin price drop throws miners into the center of the cryptocurrency crisis

This is the case with Compass Mining, which on Tuesday announced the resignation of its CEO and co-founder Whitney “Whit” Gibbs. Not only that, the CFO, Jodie Fisher, is also packed. The board’s departure comes on the heels of allegations that the company has failed to pay taxes and fees from where it operates – in addition to the electric bill – a facility in Maine owned by Dynamics Mining.

The default information came from Dynamics itself, in a post on Twitter on Monday (27). According to the company, due to payment delays, Compass Mining had its Maine contract terminated on June 14, as a result of a default of several months.

“All you had to do was pay $250K for 3 months of power consumption,” Dynamics tweeted.

Compass Mining denied the information and responded the next day: “Compass has fulfilled all of its obligations under its contracts with Dynamics, including its financial obligations.”

Mining company has 30,000 machines down

In a market statement on Tuesday afternoon (28), Marathon Digital Holdings, one of the few bitcoin mining companies listed on an exchange (NASDAQ: MARA), reported that a storm that occurred on the 11th in the Hardin region , state of Montana, resulted in the shutdown of 30,000 machines, or 75% of its entire operation, due to lack of energy.

According to the company, a power generating unit was damaged by the storm and is currently undergoing a repair assessment. “Based on the most recent inspection reports, Marathon miners in Montana may have enough power to get back up and running at reduced capacity as early as the first week of July,” the note reads.

Because of the reduction, Marathon already assesses the damage to the vaults: “With miners shut down, bitcoin production is expected to be significantly reduced until repairs to the Montana power generation facility can be completed or until the miners can be relocated to new facilities.”

*With information from Decrypt

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