Famous Crypto Mining Company is in Trouble!

first individual bitcoin one of the mining equipment marketplaces Compass Miningannounced that the Georgia center has terminated its activities due to high energy costs.

Compass Mining sent an e-mail to its customers stating that their centers 2 and 3 in Georgia will be closed due to rising energy costs.

Andean @compass_mining loses its best facility. @MiningScandals pic.twitter.com/iIeriyiSjz

— Sac_flys (@Sac_flys) September 1, 2022

“Due to the increase in local energy costs in Bulgaria, the operations of our Georgian 2 and Georgian 3 plants have been stopped by the plant owner.”

The company does not directly carry out mining activities. Instead, it sells mining equipment. It also signs mining contracts. According to sources, the decision to deactivate is up to the owner, not the company.

The owner of the facility cites the reason for the closure as a 50% increase in energy costs in the country in a short time.

This is not the first plant shutdown that has happened to Compass Mining. In the last days of August, its facility in British Columbia closed for similar reasons.

Another Compass location bites the dust. Goodbye British Columbia pic.twitter.com/rP8Putu30k

— Compass Mining Complaints and Scandals (@MiningScandals) August 31, 2022

The company plans to open another facility in Texas to replace the closed facilities.

Energy Costs Increasing Rapidly in the World

Energy costs continue to increase rapidly due to global macroeconomic conditions and wars. Brent oil, which was at $78 at the beginning of the year, had risen to $130 with the start of the Russia-Ukraine war. Currently, it finds buyers at a price of $ 90.

The situation is more critical in natural gas. The unit of natural gas, which was sold at $3.15 at the beginning of the year, finds buyers at $9.15 as of today. The dollar-based price of natural gas has increased by 200% in the past 8 months.

Oil and natural gas energies are frequently used for electricity generation around the world. The increase in the price of these products directly affects electricity prices.

With the rise in electricity prices, the profitability of cryptocurrency miners is decreasing. Adding the bear season in cryptocurrencies, it is clear that more difficult days await crypto miners.