Following in the footsteps of competitors like HashFlare, the self-proclaimed “largest cloud bitcoin mining company” and leading hash power provider, Genesis Mining has ended its lowest tier of cloud-based bitcoin mining contracts, citing an extended period of continued unprofitability.
On their official blog, the firm announced the decision to end the cheapest bitcoin cloud-mining contract tier. Genesis Mining won’t cease operations entirely, and will continue to offer bitcoin cloud-mining through their new, more expensive and powerful Radiant plans.
The customers affected by the termination of the contracts are being offered a $105 discount off their next closest plan. Cloud-mining plans start at $285 for the Gold package, $1,400 for Platinum, and $6,875 for Diamond, offering 1 TH/s, 5 TH/s, and 25 TH/s respectively. Each plan is only available under a five-year commitment.
Previous contracts featured a termination clause in case profitability ever went below the operating costs associated with running cryptocurrency miners. After a 90-day grace period, Genesis Mining reserved the right to terminate any contract that didn’t provide a profitable return on operating costs.
Genesis Mining attributed the need to end their lowest tier bitcoin cloud mining contracts to declining interest in the cryptocurrency market coupled with tumbling prices. Cryptocurrency prices have reached new lows this past week, only making matters worse for miners.
As bitcoin’s price continues to drop, there’s no doubt that miners are feeling the burn. The cost of energy to run cryptocurrency mining rigs is notoriously high. Last month, competitor Hashflare announced they would end their bitcoin SHA-256 cloud-mining contracts citing similar reasons.