• Foundry, Digital Currency Group’s Bitcoin mining arm, will be charging for its services starting April 19-22.
• This follows the bankruptcy of Genesis, DCG’s crypto lending unit.
• The move is likely to help strengthen the Bitcoin mining industry after a rocky 2022.

Foundry to Stop Offering Free Mining Services

Foundry, the Bitcoin mining arm of Digital Currency Group (DCG), is set to stop providing its services for free as of April 19-22. The company has been offering its mining pool services for free since 2019 and currently holds the largest share of estimated hash rate at more than 30%. Starting from this month, fees will be tiered based on the previous quarter’s average hashrate.

Background

The decision was made in response to DCG’s crypto lending unit, Genesis filing for bankruptcy due to a collapse in Sam Bankman-Fried’s FTX exchange. This comes after a difficult year for Bitcoin miners in 2022 with many “fighting for survival” according to Bitcoin Magazine PRO analysts. However, some good news has come out of the industry such as Terawulf’s nuclear facility operation and CleanSpark’s 50MW expansion.

Impacts

Foundry’s decision is expected to bring financial stability back into the mining sector by mitigating losses from down seasons like that seen in late 2022. Marathon Digital recently sold bitcoin for the first time in company history as part of their effort towards financial sustainability which could be followed by similar moves from other miners across the industry.

Future Outlook

Although there are still obstacles ahead such as rising electricity costs and difficulty in finding new customers, Foundry’s move signals an optimistic future outlook for the Bitcoin mining sector overall. As long as companies can find ways to stay competitive amidst changing market conditions, they may be able to weather any storms that come their way while continuing to innovate and serve customers effectively over time.

Conclusion

Foundry’s announcement marks an important milestone towards creating financial sustainability within the Bitcoin mining sector after a difficult year in late 2022. It also serves as an example of how miners can adjust their business strategies when needed in order to compete better and stay profitable despite harsh market conditions

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