Publicly traded Bitcoin (BTC) miners are preparing to end 2022 with $4 billion in debt due to price drops on cryptocurrencies and increased mining expenses.
With the complacency of the bull market throughout 2021 many mining companies that take out loans is going through hard times. Some of these companies invested in crypto money with the loans they took, while others bought new equipment for mining. It was reported that mining companies, which had difficulty in continuing their activities during the sharp declines and bear market period, were faced with a huge debt quagmire.
Hashrate Index According to a report by Bitcoin, publicly traded Bitcoin mining firms were unable to pay their debts during a year-long bear market. The data is cumulative of the top 10 publicly traded Bitcoin mining companies. Over $2.6 billion in debt revealed that.
According to December data, publicly traded Bitcoin mining companies will complete the year 2022. It looks like it will be completed with more than 4 billion dollars debt.. currently Core Scientific Some companies have already gone bankrupt, while many others are trying to restructure their loan deals.
Bitcoin miner Core Scientific was one of the companies that suffered the most in this debt swamp, and in total Files for bankruptcy with $1.3 billion in debt had been found.
Another major mining company struggling with the crisis was Marthon Digital. Marthon Digital, the second-largest indebted mining company after Core Scientific, $851 million debt However, most of them are listed as “convertible notes” that creditors can exchange for other stocks. The company also operates in now-bankrupt Compute North. $31.3 million has investment.
An important name in the mining industry recently Bitfarms (BITF) Nasdaq was warned by Its shares have been holding for more than 30 days, according to a price alert from Nasdaq. under 1 dollar Extra to help Bitfarms watching 180-day period given.
