Light Dims for Hashflare; Operations Shuttered Due to Dismal Crypto Market

Though Bitcoin’s price has begun showing signs of recovering, the damage has already been done for this mining service.

Hashflare has shut down its Bitcoin mining hardware service, and canceled all operations-related contracts.

The reason? Mining is simply not profitable for it anymore.

In a Facebook post, the cloud mining service company noted how the last few months have been difficult for the crypto market. This has affected the operation of its service.

While it’s tried to hang on, its results fell short. In the posting, the company stated:

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.

Dwindling payouts

Company officials stated that for more than a month, its users had to deal with payouts that were lower than the maintenance fees. This resulted in “zero accruals to the balance.”

In fact, as of last week, 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.

Hashflare officials told users that the company expects the crypto market to stabilize in the near future to the point that it will be able to offer users “new advantageous solutions.”