The only headache is now- novel coronavirus. Due to this epidemic, not only the people of the world, but the world market is also affected. Coronavirus’ impact on business has become a threat in both the east and west economic structures. Moreover, it affected the ability of investment. At this crisis period, the management and consulting company McKinsey & Company stated the implications of coronavirus on businesses. Riot Blockchain also be concerned about the outbreak might hurt bitcoin mining operations.
Let’s jump into their opinion.
Coronavirus’ Impact On Business
McKinsey & Company’s New Challenges Businesses Have Today
McKinsey highlighted the most affected issues amid coronavirus. According to them, companies around the world are responding to the outbreak with five sets of actions:
- Workforce protection,
- Supply-chain stabilization,
- Customer engagement,
- Financial stress testing,
- Nerve-center integration.
Except these important points, some companies are planning to take other steps. McKinsey also stressed that employee safety is the most important. But mechanisms are, for now, ineffective.
But we can’t expect that all companies and countries can able to achieve the same rapid control. For example, China has been able to revive, but in Europe, the transmission is high but remains localized.
Meanwhile, the company OneWeb announced, “voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the Southern District of New York. The Company intends to use these proceedings to pursue a sale of its business in order to maximize the value of the company.”
Riot Blockchain Expressed COVID-19 May “Seriously Disrupt” Its Bitcoin Mining Operations
A cryptocurrency miner, Riot Blockchain, is in a disaster condition because of COVID-19. First of all, most of the workers are quarantined and in self-isolation. As a consequence, its supply chain is seizing up under border restrictions and factory closures, according to the filing. According to the 10-k report, Riot has not been classified as an essential business. In any of “the jurisdictions that have decided that issue to date.” Let us say in this state, 10-K report with the Securities and Exchange Commission, filed last Wednesday. Such reports always include a “general risks” section detailing worst-case business scenarios.
At present, Riot’s Oklahoma City, OK operation features 4,000 Bitmain S17 Pro Antminers purchased over December 2019. And that is for $6.35 million in total, according to the press release. This “catastrophic” is hardly unique to Riot Blockchain. Actually, that was impossible or absurd four months ago. But now, every business is facing an existential threat. Riot confess, “If not resolved quickly, the impact of the novel coronavirus (COVID-19) global pandemic could have a material adverse effect on our business.”
Writer, researcher, and analyst on cryptocurrency and blockchain technology at L&P Digitech Pvt. Ltd. Also managing the content with SEO at this current company. Keen interest to know more about new technologies related to the crypto world and blockchain technology. Completed Masters in Computer Application (MCA) and holds Post Graduate Diploma in Instructional Designing with sound knowledge in Articulate3. Out of all, love to travel, listen to music, and to eat also.