Bitcoin Mining
After the wave of insolvency: now Bitcoin miners are also facing bankruptcy? Corporations sell up to 80% of BTC holdings to cover running costs
More and more mining companies are shedding significant parts of their Bitcoin holdings in order to be able to continue to maintain operations. For example, “Core Scientific” recently announced that it had sold almost 80 percent of its total inventory to BTCs. Other companies are also hit hard by the market development, as can be seen from a new infographic by Block-Builders.de it emerges.
In the past, many of the big players in the mining industry preferred to store their coins instead of selling them. However, the current situation does not seem to allow this to continue, since funds are needed to cover business expenses. These include, among other things, investments in data center capacities, maintenance, electricity costs, repayments of scheduled debts and more.
How tense the situation is, can also be guessed by a look at the profit margin of the miners per Terahash. This is currently at $ 0.09, which is 65 percent lower than on January 1. On an annual basis, the majority of listed mining companies have also lost significantly more in value than the number one cryptocurrency, Bitcoin.
Some market observers believe that it is possible that some mining companies are threatened with bankruptcy if a trend reversal in the crypto market is not initiated soon. How such a scenario would affect the market is considered uncertain. So there are also voices of those who do not consider the failure of individual miners to be critical for the overall market, because then in the future only those players who have done the best in the bear market would be at the top of the market.
Meanwhile, other companies and start-ups in the crypto sector have been hit hard in recent weeks and months. Among others, Celsius Network, Voyager Digital and also the start-up of the nephews of the Federal Chancellor Olaf Scholz, Rubarb, who see the reason for the failure as the collapse of the crypto markets, among other things, had to file for bankruptcy.
As the infographic shows, trading platforms are also under pressure. This becomes particularly clear when looking at Coinbase. Not only did it recently become known that 1,000 jobs are to be cut; the partner program on the US market will also be suspended from July 19.
