- HyperBlock (CSE:HYPR) is in hot water following the bitcoin halving event that occurred on May 11, 2020
- The company says that its compensation rewards earned from bitcoin mining have been significantly reduced
- HyperBlock’s energy provider, Energy Keepers, has also cut power to its facilities
- This, in combination with the reduced mining rewards, has resulted in an inability for the company to continue its operations
- HyperBlock’s shares are currently on suspension, following a cease trade order issued by the Ontario Securities Commission of May 21
HyperBlock (CSE:HYPR) is in hot water following the bitcoin halving event that occurred earlier this week.
Bitcoin halving occurs approximately every four years, and halves the rate at which new bitcoins are created. In other words, miners receive 50 per cent less bitcoins for verifying transactions.
The original idea behind the halving was to create a similar commodity to gold, only digitised: the more you mine, the more difficult it becomes to find.
Prior to May 11, 12.5 bitcoins were generated every ten minutes. This has now been reduced to 6.25.
In an initial announcement released yesterday, HyperBlock addressed the event which it said has significantly reduced bitcoin mining compensation rewards earned by the company.
As a result, HyperBlock cautioned that the combination of current bitcoin pricing, overall network hashrate, ability to access reliable and affordable power, and deteriorating capital position have made its operations uneconomical.
This has now been compounded by the termination of a long-term power supply agreement with Energy Keepers.
As such, HyperBlock’s 20-megawatt datacentre has now been shut down, and the company has ceased all of its cryptocurrency mining operations.
In conjunction with its board and financial advisors, HyperBlock is currently exploring alternative power supply and strategic financing options. Should it fail to do so, the company may be forced to end all of its operations entirely.
HyperBlock’s shares are currently under suspension following a cease trade order issued by the Ontario Securities Commission on May 21 last year.
Pursuant to CSE Policy 3, the order was handed down after HyperBlock disclosed that it did not expect to file its relevant certifications for the 2018 year by the required date of June 30, 2019.