Riot Blockchain Says Coronavirus Outbreak Might Hurt Crypto Mining Farms
The rig builder revealed its concerns regarding Coronavirus in its annual 10-K report with the Securities and Exchange Commission, filed on Wednesday. Reports of this type always include a section known as general risks, detailing the worst-case scenarios that the business could face. This year, Riot added two pandemic-specific subsections to discuss COVID-19 in particular.
In response to COVID-19, Riot Blockchain is having trouble operating as per usual. Its workers are self-isolating like much of the world, and its supply chain is seizing up under border restrictions and factory closures.
At present, Riot's Oklahoma City operation features 4,000 Bitmain S17 Pro Antminers purchased over December 2019 for $6.35 million total, according to two press releases issued at the time. Those rigs replaced Riot's older fleet of about 8,000 S9 models, now offline, the 10-K shows.
The catastrophic business consequences of COVID-19 are hardly unique to Riot Blockchain; nearly every business is facing an existential menace that only four months ago would have sounded absurd.
It’s an open question where all this will lead. Riot admits that the pandemic’s “sweeping nature” makes it next to impossible to predict the long term impact. One thing is certain, though:
“If not resolved quickly, the impact of the novel coronavirus (COVID-19) global pandemic could have a material adverse effect on our business.”