Riot Blockchain warned about COVID-19's impact on BTC mining

by in Cryptocurrency News


Riot Blockchain, an American mining company, is experiencing “serious disruptions” in bitcoin mining operations due to the COVID-19 pandemic. Information about the risk was mentioned in the annual report for the SEC.

Unlike the previous year, the “General Risks” section of the report contains a subsection that reflects management's opinion on the impact of coronavirus on the company's business. Employees went into quarantine or self-isolation mode, while the supply chain failed due to the closure of factories and transportation restrictions.

“If we can’t effectively monitor the condition of the miners, then they will begin to fail, and the ability to mine bitcoin will weaken,” Riot Blockchain mentions in the report.

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The company's fears echo the situation of Chinese miners, who fell into similar circumstances in February-March when quarantine was introduced in the country due to the spread of coronavirus.

Currently, the Riot Blockchain capacities consist of 4 thousand Antminer S17 Pro devices purchased in December 2019 to replace 8 thousand outdated Antminer S9 analogs.

“If the problem is not resolved quickly, the consequences of the new global coronavirus pandemic (COVID-19) can have a significant negative impact on our business,” the organization warns.