By
Temitope Olatunji
April 26th, 2024
Users who desire to use Microsoft’s online services for cryptocurrency mining must now apply and obtain approval before doing so.
Tech giant Microsoft has quietly banned the use of its cloud service, Azure, for cryptocurrency mining. Previously, it was possible to mine cryptocurrency on Microsoft Azure, except you are using a student account. With the new update, using Microsoft Online Service to mine cryptocurrency without prior written approval is now prohibited.
Microsoft introduced the update to its policy as part of measures to make its cloud services more stable, secure the ecosystem, and protect its clients. Reportedly, Microsoft data centers have experienced several capacity shortages recently due to supply overload.
According to the company, “we made this change to further protect our customers and mitigate the risk of disrupting or impairing services in the Microsoft Cloud.”
Following the update made on December 1, users who desire to use Microsoft’s online services for cryptocurrency mining must now apply and obtain approval before doing so. Meanwhile, the firm stated that it may grant permission to users who wish to mine crypto for research and testing purposes.
Cloud Services Say No to Cryptocurrency Mining
Microsoft isn’t the only tech firm with cloud services to prohibit cryptocurrency mining on its servers in some form. Google announced a similar policy earlier after malicious actors reportedly used its services to mine crypto. It also added an anti-malware service to its cloud services.
Similarly, Digital Ocean requires written approval for cryptocurrency mining on its platform. Also, Oracle and OVH forbid crypto mining on their platform. As for Amazon Web services, crypto mining is not available on its free tier.
What’s Next for Cryptocurrency Miners?
According to the Blockchain Council, cloud mining presents an alternative way for crypto miners to stay profitable. By eliminating the need for mining rigs and reducing costs, miners can make the best of an already bad situation.
2022 has pushed many Bitcoin miners into bankruptcy. As energy costs and debt burdens rose among miners, it was inevitable. America’s largest mining company, Core Scientific (CORE) was also affected. After losing $1.7 billion in 2022, CORE sold off its entire Bitcoin holdings as it struggled to stay afloat. Eventually, the company filed form 8-K with the SEC.
Cloud mining may be the only option for miners hoping to remain in business.