ForexMinute.com – The depressive Bitcoin value seems to have hit the cloud mining businesses hard, proves ZeusHash, a Bitcoin miner which recently announced to discontinue its cloud mining operations after facing a week of financial losses.
In its announcement, the company elaborately explained customers that due to weakening Bitcoin value, they are not able to cover their maintenance costs. To avoid legal implications, ZeusHash further recalled its terms that clearly allows them to withdraw all sorts of mining operations “if” they are unable to recover their maintenance fees for 10 days in a row. Excerpt:
“We’d like to warn you not to purchase more GHS as it’s not the best time for investment. And we are working on different plans for your profits when the conditions for freezing GHS contracts are met. The final solution will be released then.”
In a separate comment to CoinDesk, ZeusHash CEO Terry LI said:
“I don’t know if there are many platforms [that are going to] be left on the play field. I’m sure that suppliers like us backed up by real hashing power would be running out of juice pretty soon. All contracts will be frozen within [a] short time if price keeps dropping.”
A few days back, another Bitcoin mining company Cex.io had also stopped providing cloud mining services due to no profitability.
The current Bitcoin market sentiment is bearish, and value is somewhere around $190.