CoinTerra disputes the allegations and says it has filed a counterclaim against C7.
CoinTerra is in default on its senior notes as a result of the shutoff of its zo6 at C7, according to Iyengar. The loan is secured by Mining assets, including its Bitcoin mining equipment. As a result, CoinTerra was forced to turn off its mining operations at other data centers, including its presence at CenturyLink Technology Solutions.
A CenturyLink spokeswoman declined to comment on the service provider’s relationship with CoinTerra, citing confidentiality agreements. CoinTerra manufactures and sells bitcoin mining hardware and hosts and manages mining hardware for customers as a service.
Iyengar said it has updated its customers on the status of its operations and the default on its debt.
CoinTerra has not made payouts bitcoin its cloud mining customers since Dec. In a statement, CoinTerra said it has filed a countersuit against C7. CoinTerra intends to vigorously prosecute its claims against C7 while defending mining claims levied by C7.
Yet, CoinTerra is hopeful that the parties can resolve this matter quickly.
Iyengar said the company’s comment zo6 the C7 case would be limited to its statement. In assessing his company’s challenges, Iyengar said CoinTerra’s efforts have been undermined by “irrational” mining practices that have made it difficult to earn new bitcoins. The network is designed to adjust its reward system based on the level of activity. As the price of bitcoin rises, the computing power on the network known as hashrate should increase.
As the price declines, the hashrate should eventually moderate — at least in theory. Iyengar said this has not held true. But as the price has moved lower, the network hashrate has continued to rise, reaching an all-time high of petahashes last week. One or the other has bitcoin give. There are other factors in place. Perhaps it’s unfair access to power.