In simple words, if a company is spending more money on operations for bold-computing power and not generating any profitable margins, the plug shall be pulled, and that is what has happened with HashFlare. “HashFlare is a department of HashCoins, a company that develops software for cloud mining and maintains equipment in datacenters”. To learn more about HashFlare, click here.
According to some reports, it has been determined that HashFlare responsibility to maintain the equipment’s at datacenters is far-fetched and they aren’t making enough profits. A few alternatives were presented to HashFlare, however at this time, they are declining such alternatives and have halted all operations since they were unable to meet clients, investors’ expectations as the “threshold for payments has been lower than the maintenance fees for the mining equipment”. Apparently this case has been ongoing for about 28 days in a row, which ultimately resulted the company to call it quits, for now. This could be the end for many mining contracts, despite the investments that has been involved in such operations.
All SHA-256 mining hardware and other associated contracts have been placed on hold. Sadly, this could also mean that for those whom have invested in this particular cloud mining company will not be getting their money back in the near future and although the contracts are suspended for the time being. In addition to that, no further alternatives have been implemented nor accepted by HashFlare. If the cryptocurrency markets proves to stabilize in the upcoming weeks, HashFlare could announce for presuming operations back to normal.
Although HashFlare has announced such an unwanted decision, there has been an upturn in Bitcoin value, reaching at its high peak of $7,700.01, just a hundred dollars in value spike. According to NewsBTC, it’s has been mentioned that “a break past this level could take bitcoin price up to the next dynamic resistance at the 200 SMA near $9,000. The triangle pattern spans $6,500 to $12,500, so the resulting rally could be of the same height.”
It could be a while before HashFlare recalls its announcement and may even turn back to normal operations, however the decisions is still not confirmed and it is still uncertain if the “halt” decisions for all the mining contracts was a permanent decision or if they are to be revived.