The Bitcoin industry has not been spared from the ill-economic effects of the ongoing coronavirus pandemic.According to a recent filing with the US Securities and Exchange Commission, Bitcoin mining giant Ebang reported a 50% drop in its revenue for the first half of 2020, with the report coming after quarters of otherwise strong growth for the young company.Coronavirus hits Bitcoin minerAs a power-heavy protocol, the operation and maintenance of the Bitcoin requires huge amounts of power to be fed into the network, especially for the computers that calculate millions of problems each second and industrial coolers that keep such machinery cool (and prevent heat-based fires from taking place and destroying the setup).
“Marching into these new fields, we are staying true to our mission in strengthening the technological innovation in our products and services to ensure their competitiveness in the market.”
Ebang was able to save an estimated $10 million in operating expenses and losses with such business moves and outcomes, the filings indicated. Still, the savings were a drop in the bucket for the crypto mining giant, which generated a massive $300 million in revenue in 2018.Meanwhile, Ebang’s plan for a new crypto exchange comes as Bitcoin miners battle the effects of increased complexity for mining new Bitcoin and the high costs associated with doing so.
