The Co-founder Of Bitfarms Resigns Leaving Crypto Miners In Crisis

The Co-founder Of Bitfarms Resigns Leaving Crypto Miners In Crisis

Emiliano Grodzki, the co-founder and CEO of the Canadian Bitcoin mining company, has quit, according to a post published by Bitfarms on December 29. Geoffrey Morphy is upgraded to the chief executive officer at #Bitfarms. Geoffrey Morphy was subsequently promoted by Bitfarms from President and Chief Operating Officer to President and Chief Executive Officer.

The company’s new CEO, Geoff Morphy, commented on the development, saying that he is prepared to manage Bitfarm’s expansion since he is even more dedicated and motivated than when he first joined the organization in 2020. He considered his resolve to assist the company in improving while it carries out its mining operations.

The new board of directors chairman, Nicolas Bonta, also applauded Geoff’s hiring and claimed that the new CEO had transformed Bifarms from a tiny Canadian business with five mining farms into an international enterprise with more than ten farms spread across four nations.

Emiliano Grodzki and Nicolas Bonta developed the mining company in 2017. Grodzki will continue to serve as a director on the board, based on the organization, while Nicolas Bonta will switch from his current position as executive chairman to that of board chairman. Owing to Grodzki’s resignation, Geoffrey Morphy, President of, and Chief Operating Officer has been elevated to CEO.

The business declared in a statement that Morphy, who formerly had the title of Chief Operating Officer, will remain in his role as president. According to Morphy, the emphasis on operating effectiveness, cost controls, corporate governance, and a broad portfolio of underutilized energy sources are crucial in challenging times and equip us for success in all conditions.

Due to the bear market, bitcoin miners have made money even if their daily output has reached record lows. Bitfarms has suffered consecutive defeats over the last two quarters, thus the present market conditions haven’t been kind to the business. However, Bitfarms got a warning notice from Nasdaq on December 13 as a result of the company’s stock price falling below $1 for 30 consecutive working days. The company learned of the notification on December 14 and declared that it had a 180-day first term to get back in line with Nasdaq’s rules.

The company’s shares must close at $1 for 10 consecutive days before June 12, 2023, to comply. In such a case, Nasdaq representatives would notify Bitfarms in writing that compliance had been proven Two further mining firms that have already declared bankruptcy, Compute North and Core Scientific, are also encountering issues. With its limited resources, Argo Blockchain is also having difficulties.

Record-High D/E Ratio for Miners

Popular American Bitcoin miner Core Scientific revealed last week that the company has filed for bankruptcy protection under Chapter 11. The report comes after a prolonged crypto winter and a sluggish increase in the value of Bitcoin, both of which were made worse by FTX’s bankruptcy. The company appeared to have the highest debt-to-equity (D/E) ratio and the most debt borrowing among its rivals.

Marathon is the second-largest debtor with commitments of $851 million. With $114 million in debt and no indication of bankruptcy, BitFarms is ranked in a safe tenth place. The aggregate debt of publicly traded bitcoin mining companies reaches $4 billion, according to research from Hashrate Index.

According to the platform, most industries view a debt-to-equity ratio of two or above as risky. Despite having a D/E ratio of 26.7, Core Scientific was overburdened with a substantial number of commitments. According to the criterion of the platform, Argo’s D/E ratio of 8.7 is also unusually high.

Marathon Digital Holdings, Canaan Inc., and Riot Blockchain have been excluded from the list of contenders. However, BIT Mining Limited, a leading competitor, too has a high D/E of 4.4.

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About Maria Morgan

Maria Morgan is a full-time cryptocurrency journalist at Coinography. She is graduate in Political Science and Journalism from London, her writing is centered around cryptocurrency news, regulation and policy-making across the glob.

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