It’s dark times for the cryptocurrency industry, and that includes Vancouver-based Luxxfolio (Luxxfolio Stock Quote, Charts, News, Analysts, Financials CSE:LUXX), which recently gave indications of folding up shop. PI Financial analyst Kris Thompson delivered a report on the company on Wednesday where he moved his rating on the stock from “Buy” to “Under Review” after a recent update from the company.
Luxxfolio, which operates an industrial-scale cryptocurrency mining facility in the United States powered by renewable energy, gave an operations update on Wednesday, saying the depressed crypto market has caused the company to “seek strategic alternatives” with regards to its 15MW bitcoin mining facility in New Mexico.
“In the absence of finding a partner or purchaser for the mining operation, the Company will consider all options including idling or a permanent shutdown of operations,” the statement read.
Luxxfolio said the market price for bitcoin has dropped at the same time as the hash rate has climbed, making for lower revenue per coin and greater expenses, including for electricity which has risen in cost.
“To date, Luxxfolio has reduced its debt and moved to lower-cost immersive mining, but remains unprofitable,” the company said.
In the statement, Luxxfolio also said two board members have resigned effective November 1, leaving a total of two directors on the board at present.
For Thompson, he called Luxxfolio “the most recent Bitcoin miner to fall victim to this episode of crypto winter.”
“We are changing our rating from BUY to UNDER REVIEW in order to assess the implications of this corporate update,” Thompson said.
Year-to-date, the price of bitcoin is down by a little over half, while over the past 12 months, BTC is down about 64 per cent.
As far as Luxxfolio’s share price goes, the stock reached a high of just under $1.00 per share in mid-October of last year but has been dropping since, hitting $0.015 in Wednesday trading.
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