Cloud Mining Platform HashFlare Stops Services, Disables Equipment on SHA-256 Contracts

Cloud cryptocurrency mining service HashFlare announced July 20, that it is stopping mining services and shutting down hardware on current SHA-256 contracts due to difficulty generating revenue.

HashFlare is a cloud cryptocurrency mining platform founded in 2013. Cloud mining is a system where a user purchases a portion of the mining power of hardware hosted and owned by a cloud mining service provider. The service provider configures the hardware, maintains uptime and selects the most efficient and reliable pools.

The decision to discontinue mining maintenance is reportedly the result of difficulties for the company to turn a profit amid market fluctuations. According to the HashFlare’s statement, for over a month the amounts for contract payments were lower than service fees, resulting in zero accruals to users’ balances. As of July 18, payouts were lower than maintenance costs for 28 days in a row. 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… As BTC mining continues to be unprofitable, we inform that on July 18, 2018, we had to start disabling SHA equipment, and today, on July 20, 2018, withhold the mining service for active SHA-256 contracts.”

Yesterday, HashFlare announced that users must now  “undergo the process of identity verification” in order to ensure compliance with Know-Your-Customer (KYC) and anti-money laundering (AML) standards, claiming that “verified users will enjoy increased daily and monthly withdrawal limits.”

Yesterday, Taiwan Semiconductor Manufacturing Co. (TSMC), decreased its annual revenue and capital expenditure estimates due to reduced growth in the smartphone and cryptocurrency mining fields. TSMC, who produces chips for tech giants like Nvidia Corp., Apple Inc., and Qualcomm Inc. cut its revenue growth forecast for the year from ten percent to “a high single digit percent.”