There will only be one left – This adage made famous by the Koh Lanta survival show has its place in cryptos and more particularly in Bitcoin mining. All the more so after a year of bear market. Big players have gone out of business (lending platforms, first- and second-tier exchanges) and the list will probably include other names in the coming weeks.
Bitcoin mining: Core Scientific must release the calculator
Among the historical markers of bear markets is the “miners’ capitulation”. Less robust miners at least. After one period of euphoria and ultra lucrative BTC mining, the price of a token has come very close to its average production price. Which puts a lot of pressure on hashrate keepers.
Indeed, with the fall in prices since November 2021 (-76% for BTC), profitability has also fallen. While electricity bills have not decreased, quite the contrary. Core Scientific pulled out the calculator, and the numbers aren’t pretty.
After net losses of $862 million in the second quarter of 2022, its total net losses amount to $1.71 billion over the year.
“Given the uncertainty regarding the financial condition of the company, substantial doubt exists as to the ability of the company to continue operations until November 2023. »
Report filed with the SEC
>> Want to add bitcoin to your wallet? Sign up for AscendEX and get 10,000 free bitcoin sats (sponsored link) <<
Bitcoin – Lose rich, lose poor
The brutality (but especially the volatility) end of market cycles are very violent in cryptocurrencies. Even for “the big ones”. Whether for the top or for the bottom, amateurs and professionals alike can leave their capital there. See more. This universal law also applies to Bitcoin miners. Mining farms require colossal investmentof the operation costs equally important and daily maintenance.
The firm Core Scientific is currently going through this particularly bloody market phase. This even casts doubt on its continuation of operations after November 2023. In a previous report sent to the SEC in October, the miner was already pointing three major difficulties to explain his situation:
- a low Bitcoin price, therefore unprofitable
- ever-increasing electricity bills
- Celsius’ refusal to honor its $2.1 million debt to Core Scientific
In this report we could also read that all the cash of the company could be seriously depleted by the end of the year 2022. Add to that the BTC mining difficulty which has recently been adjusted upwards, and the equation is even more unsustainable financially for Core Scientific.
For you, blockchain technology and cryptocurrencies will soon be at the heart of the daily life of each of us. You can expose yourself to Bitcoin, Ethereum and other tokens on the rising exchange. Register now on AscendEXand enjoy 10,000 Satoshis (sats) of bitcoin offered with this link (commercial link).