According to Bloomberg, Morphy filed a lawsuit against Bitfarms in the Ontario Superior Court on Friday, seeking compensation for breach of contract, wrongful dismissal, and aggravated and punitive damages. Bitfarms said the company believes the claims are unfounded and intends to defend itself vigorously. Morphy did not immediately respond to a request for comment. In 2024, the Bitcoin mining industry faces various headwinds, including rising energy prices, increased competition, and the impact of the "halving" of software code updates in April, which greatly reduced their main source of income. Although Bitcoin prices soared in the first quarter, the production of new coins fell sharply due to a surge in mining difficulty (a measure of the computing power required to create Bitcoin tokens) during the same period. Bitfarms' stock price has fallen by about 40% this year, closing at $1.73 on Friday.