Cex.io Suspends Cloud Mining Services; Citing Low Bitcoin Price

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Cex.io Suspends Cloud Mining Services; Citing Low Bitcoin Price

Bitcoin exchange platform Cex.io recently suspended its cloud mining operations for an unmentioned period.

In its explanation, the company referred its ‘Term of Use’ that allows them to halt services when “the amount of the Maintenance Cost exceeds rewards for each mined block or if the mining is economically inexpedient.”

Cex.io blamed the declining Bitcoin value, alongside increasing mining difficulty are impact their capability, to be the reason why they and their customers are incapable to earn a decent profit balance. The company’s Chief Information Officer Jeffrey Smith said:

“Suspension of CEX.IO cloud mining service is only a forced temporary measure, the result of cloud mining costs exceeding mining profit. Currently all cloud mining/maintenance costs are directed to the Hardware provider, hence, we are open for negotiations with additional mining hardware providers, who can offer favorable terms. And, as soon as we get an opportunity to upgrade mining hardware, or come to more efficient terms with energy suppliers, cloud mining process will be automatically resumed.”

For now, Cex.is hoping to resume cloud mining operations once the Bitcoin value crosses above $320 which, at this point of time, seems unlikely. On BitFinex, the price has fallen below its 2013’s pre-bubble price. It is now valued around $230 and is presumed to be displaying a bearish breakout, where value might even test the lower 200s anytime in upcoming days.

A majority of Cex.io customers are indeed upset with their announcement. Their comments can be read from the company’s official forum.