Riot Blockchain, an American mining company, is experiencing “serious disruptions” in bitcoin mining operations due to the COVID-19 pandemic. Such risks are described in the annual report for the SEC.
Unlike the previous year, the “General Risks” section of the report contains a subsection that reflects management’s opinion on the impact of coronavirus on the company’s business. It was noted that employees went into quarantine or self-isolation, while the supply chain has failed due to the closure of factories and transportation restrictions.
“If we are unable to effectively service our miners, our ability to mine bitcoin will be adversely affected as miners go offline, which would have an adverse effect on our business and the results of our operations,” Riot Blockchain mentions in the report.
The company’s fears echo the situation of Chinese miners, who fell into similar circumstances in February-March, when quarantine was effective in the country due to the spread of coronavirus.
Currently, the Riot Blockchain capacities consist of 4 thousand Antminer S17 Pro devices purchased in December 2019 to replace 8 thousand outdated Antminer S9 analogs.
“If not resolved quickly, the impact of the novel Coronavirus (COVID-19) global pandemic could have a material adverse effect on our business,” the company warns.
Recall, on March 26, the complexity of mining in the Bitcoin network experienced the second-largest decrease in history.