Bitcoin miners have been negatively affected by rising energy prices, extreme macroeconomic factors and increasing inflation. Many Bitcoin miners struggle to maintain profitability and remain afloat amid the continuing bear market.
Another factor is that the Bitcoin hashrate keeps rising, increasing pressure on miners. Many miners received high-interest loans that they couldn’t repay due to economic conditions.
Bloomberg reported that Core Scientific and other mining companies have warned investors about impending bankruptcy. The harsh environment is affecting other Bitcoin miners like Argo Blockchain or Iris Energy.
HIVE Announces A Debt-Free Balance Sheet Despite Bearish Mining Returns
Hive Blockchain, a Canadian Bitcoin miner, released its production report despite all the difficulties. Hive Blockchain had 3,311 Bitcoin valued at $68.8 Million, according to the report.
According to the report, the miner is in debt free while the rest of its peers feel the pain from crypto winter.
HIVE mined 307 BTC in October at an average rate of 115 BTC each exhaust. Frank Holmes, HIVE’s executive chairman, stated that they were proud of their results. Holmes stated that they were happy to generate more than 300 BTC per month.
The CEO stated that they had produced Bitcoin equivalent to 1% of the worldwide network. This is despite all the difficulties in the sector.
Take a look at the embattled Bitcoin mining firms
Argo Blockchain, a Bitcoin mining business based in London (ARB), is currently facing insolvency. Following the failure of a $27 Million fundraiser last week, Argo Blockchain (ARB) is now looking for liquidity.
The deal’s failure caused ARB’s shares to plummet by 70%. In October the company signed a letter of intent to sell 87 million shares to investors to relieve financial pressures. But the deal did not materialize.
Compute North North (based in North America), one of the largest crypto mining data centres filed Chapter 11 bankruptcy. The company reportedly owed around 200 creditors 500 million dollars.
Compute North reported in February that it had raised $385million capital. This fundraising includes a $85 million Series C equity round as well as $300 million of debt financing. The firm went bankrupt due to ongoing difficulties in the BTC mining industry.
Compute North couldn’t maintain its operating costs due to rising energy costs and record issues in BTC mining. Also, the CEO of Compute North, Dave Perrill, resigned and Drake Harvey was appointed chief operating officer.
Core Scientific also declared that it is unable to continue operating after the fall in shares of 77% during October. The Firm stated it could declare bankruptcy if all its other fundraising options fail.
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