Cryptocurrency & Blockchain Business

Cloud Mining Company Hashflare Cancels All Bitcoin Mining Contracts

Hashflare, the cloud cryptocurrency mining company has terminated all bitcoin mining contracts active in their platform as of today, citing unprofitability as the main cause of this cease. This will affect most cloud miners in their platform, and they are already facing stiff criticism on the social networks because of this. They informed this via an email sent to all users that had active bitcoin contracts earlier today.

Hashflare is a cloud mining service derived from the mining hardware company HashCoins, based in Estonia. They offer remote mining services for clients that want to enter the world of cryptocurrency mining without having to mess with hardware issues in their houses or wherever they want to put their equipment. But this approach has also its drawbacks, like this that is happening today.

The email sent by them to user read as follows:

“WE HAVE MADE EVERY POSSIBLE EFFORT IN ORDER TO RESOLVE THE PROBLEM THAT HAS ARISEN… FOR OVER A MONTH OUR USERS ENCOUNTERED A SITUATION WHEN THE PAYOUTS WERE LOWER THAN THE MAINTENANCE FEES, RESULTING IN ZERO ACCRUALS TO THE BALANCE. AS OF 18.07.2018, THE PAYOUTS WERE LOWER THAN MAINTENANCE FOR 28 CONSECUTIVE DAYS.

BTC MINING CONTINUES BEING UNPROFITABLE, IN LIGHT OF WHICH WE WOULD LIKE TO INFORM YOU THAT … TODAY, ON 20.07.2018, STOP THE MINING SERVICE OF ACTIVE SHA-256 CONTRACTS IN ACCORDANCE WITH CLAUSE 5.5 OF OUR TERMS OF SERVICE.

The terms of service clearly state that if the mining process becomes unprofitable the contract would be terminated permanently. By becoming unprofitable, it refers to fees and maintenance being costlier than the value of the bitcoins mined. This is indeed an uncomfortable situation that has arisen due to the low prices of bitcoin in last month’s market, and the inability of Hashflare to save money due to electricity costs and high maintenance fees.

Users have already started to complain via social networks about this unilateral measure taken by the enterprise. The reactions are varied and go from insulting the company to asking for a refund for almost new contracts. They have had a pretty difficult relationship in the past with their users, having a bad record of changing contract duration from lifetime to a year, something that caused an uproar between its customers, and also rising minimal cryptocurrency withdrawal amounts.

There are no more statements from spokespersons of the HashFlare, but more than one million users are being affected by this termination of contracts, and it will surely bring more problems to the company and even legal actions against it in the near future.

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