WSJ announced the sale of bitcoin malers at a discount above 70%
Mining companies are forced to massively sell equipment for cryptocurrency mining to cover losses from market falling. This is reported by The Wall Street Journal.
According to Luxor Technology, ASIC-Mainers are now about $ 24, although last year their average price was $ 106. The discount in this way https://gagarin.news/news/investment-in-champagne-a-bottle-of-sparkling-wine-with-famous-nft-was-bought-for-2-5-million-dollars/ reaches 77%.
Mining companies actively purchased equipment and rented warehouses during the growth of the cost of cryptocurrencies, often at the expense of credit funds.
After a series of raises in the key rate of the US Federal Reserve System, the market responded with protracted correction. As a result, manufacturers of equipment for the production of cryptocurrencies were faced with large losses. For many of them, the sale of asic mainers is the only way to earn money.
Last week, a public mining company and a Core Scientific blockchain hosting provider warned SEC that in late October-early November, she would not fulfill its obligations, including payment for equipment. Against the background of the threat of bankruptcy, the company’s shares collapsed by almost 99% since the beginning of the year.
A similar situation is observed with other players. TERAWULF lost 93% of its capitalization. Stronghold Digital Mining shares fell by 94%, Riot Blockchain – 74%, Hut 8 Mining – by 70%, Marathon Digital Holdings – 67%.
Some firms are forced to get rid of the equipment just received. At the end of October, Argo Blockchain said she would sell 3843 new cars to attract capital.
The situation attracts buyers of problem assets. GrayScale Investments has launched a digital asset manager.
The Bitdeer mining service founded by Jihan Wu Provider of Minining Services will create a $ 250 million fund for the purchase and operation of devices for cryptocurrency mining.
At the same time, mining can still be profitable for companies that do not have a high debt load. According to Blockchain.COM, a record indicator of the hashReite indicates that more and more cars are connected to the network.
Recall that in September, a mining company and an infrastructure provider for the production of cryptocurrencies in the cloud services of Compute North filed a bankruptcy statement.
Earlier, FORKLOG reported that the miners began difficulties against the background of market stagnation, the rise in price of energy resources and the decline in the hashprais.
According to Arcane Research, the overwhelming number of public mining companies reflected retained loss on the balance sheet, despite the successful 2021.
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