The Co-Founder of Bitfarms Resigns, and Crypto Miners Are Still in Crisis

by | Jan 4, 2023 | Bitcoin, Market, News | 0 comments

The current price movement in Bitcoin has resulted in a market capitalization of $319,176,208,585.94 for tokens. Bitcoin has changed -64.05% so far this year. Bitcoin is classified as a currency by CoinDesk’s Digital Asset Classification Standard (DACS).

Bitcoin is the world’s first decentralized cryptocurrency, which is a sort of digital asset that employs public-key cryptography to record, sign, and transport transactions across the Bitcoin blockchain without the control of a central authority.

The Bitcoin network (capital “B”) was founded in January 2009 by a mysterious computer programmer or group of programmers under the identity “Satoshi Nakamoto.” The network is a peer-to-peer electronic payment system that uses bitcoin (lower case “b”) as a cryptocurrency to send money over the internet or as a store of value, similar to gold and silver.

Because each bitcoin is made up of 100 million satoshis (the smallest unit of bitcoin), it is divisible to eight decimal places. This means that anyone may purchase a fraction of a bitcoin for as little as one US dollar.

Bitcoin price

By early 2013, the dominant cryptocurrency had rebounded from an extended negative period and briefly surpassed $1,000. However, due to the infamous Mt Gox hack, China’s initial crypto ban, and other factors, it took another four years for the BTC price to rise beyond $1,000. However, after that threshold was reached, bitcoin’s price proceeded to rise substantially throughout 2017, until it reached its previous all-time high of $19,850.

Over the course of 2018, the whole crypto market entered what is now known as the “crypto winter,” a year-long bear market. It wasn’t until December 2020, when bitcoin returned to challenge the previous all-time high, that it finally eclipsed it, rising 239% over the next 119 days to a new all-time high of $64,799.

Crypto Miners are still in trouble. According to a business statement on Thursday, Emiliano Grodzki, co-founder and CEO of Canadian bitcoin miner Bitfarms (BITF), has quit, effective immediately. Geoffrey Morphy, President and Chief Operating Officer, has been elevated to take his position.

Grodzki, who co-founded the firm with Nicolas Bonta in 2017, will continue to serve as a director. Bonta will be promoted to chairman of the board from executive chairman.

Geoff was instrumental in transforming Bitfarms from a primarily Canadian company listed on the TSX Venture Exchange with five farms in Quebec to a global powerhouse in little over two years. Exahash is a metric for computing power.

Bitcoin miners’ values have fallen as a result of rising energy costs and declining bitcoin (BTC) prices.The bankruptcy of Compute North and Core Scientific (CORZ) shook the market even further, as did the likelihood of other firms applying for Chapter 11 protection, such as Greenidge Generation (GREE). Bitfarms are not immune. Its stock has fallen 92% this year, and the business has a market capitalization of under $85 million. Bitfarms has been attempting to minimize its debt load in order to stay viable. It paid down $27 million in debt last month in an effort to repair its balance sheet. The firm, which mostly mines bitcoin with hydroelectric electricity, operates ten mining facilities in Canada, the United States, Paraguay, and Argentina. In premarket trade on Thursday, its shares were up 3.5%.