The Digital Currency Group will restructure its Bitcoin mining operations in the face of larger funding issues, largely as a result of another of their subsidiaries, Genesis, going bankrupt as a result of their dealings with FTX.
Although Genesis reached an agreement with its creditors, including the crypto trading platform’s parent company, DCG, the former is set to be sold as soon as a buyer appears.
The agreement reached by DCG and its subsidiary was a step in the right direction. However, DCG is still in a bind and appears to be looking for new revenue streams.
Foundry USA, a DCG Bitcoin mining subsidiary, will begin charging users for their services in mid-April.
Until now, using Foundry has been free since the service launched in 2019, quickly becoming the world’s largest mining pool in terms of computing power.
According to btc.com, Foundry currently controls 33.49% of the global Bitcoin mining pool, with F2Pool controlling 14.06% and Binance Pool controlling 11.16%.
Unfortunately, nothing lasts forever, and DCG announced that the service would no longer be provided free of charge. To be fair, most mining pool services charge a fee – Foundry is only now starting to charge what everyone else does.
However, the decision has understandably disappointed some of the service’s fans.
According to Bloomberg, Foundry’s new business model will be a tiered list of mining service subscriptions, with the price varying quarterly based on the previous quarter’s hash rate.
“As the Foundry USA Pool grows, we are implementing tiered fees that will allow us to expand our feature set while maintaining our FPPS [Full Pay Per Share] payout model.” Each quarter’s pricing tiers will be based on the previous quarter’s average hash rate – a measure of computing power.”
Although it is unfortunate that the largest mining pool will abandon the practices that earned it the title of top dog, it was not entirely unexpected. For the time being, it’s unclear what current users will have to pay for the first quarter. Foundry’s new business model will go into effect in about two weeks, between April 19th and 22nd.