Genesis Mining Aims to Eliminate Non-Profitable Contracts
Genesis Mining, a cloud mining provider, is now forcing some of its clients to subscribe for a 5-year upgraded plan or a loss of service will result as announced on the 16th of August. The company based in Iceland has stated online that it will shut down any open contracts belonging to clients that are not gaining enough profit to pay for maintenance in about two months as a result of the continuously dropping digital coin market.
For those that are looking to maintain the services provided will be forced to upgrade their accounts to that of a premium status. As stated by the company, due to the fact that cryptocurrency mining is advanced and developing to become much more complex and consuming increased amounts of energy, Genesis is being forced to review all its policies and act accordingly.
As of now, all the company’s users will be required to upgrade their accounts to a contract covering five years and will not be able to preemptively cancel once upgraded. Each TH/S charge will be discounted from the previous $285 per trillion hashes a second to $180. As Genesis has additionally stated, due to the unfortunate decline in BTC since the beginning of this year, the increase in mining difficulty has resulted in a significantly lower output. In light of this, some accounts are generating far less than the required fees for maintenance on a daily basis and as of now, the two months’ window will be granted before open contracts are fully terminated.
Genesis is also not the first company to discover that some clients were making no profit whatsoever from their mining efforts. Around two months ago, Hashflare also revealed that it was terminating its BTC mining and shutting down any related contracts since profit was unable to cover the cost of maintenance for almost a month.