Bitcoin Miners Suffer Over $1 Billion Loss In Q2 2022
17 Août 2022 - 12:22AM
NEWSBTC
After incurring a number of impairment losses brought on by the
decline in cryptocurrency prices, the three biggest US publicly
traded Bitcoin mining companies lost more than US$1 billion in the
second quarter. Bitcoin Miners In Deep Red In the three months that
ended June 30, Core Scientific Inc., Marathon Digital Holdings
Inc., and Riot Blockchain Inc. all reported net losses of US$862
million, US$192 million, and US$366 million, respectively.
Following the approximately 60% decline in the price of Bitcoin
during the quarter, other large miners such Bitfarms Ltd. and
Greenidge Generation Holdings Inc., which released results on
Monday, were also obliged to write down the value of their
holdings. Source: Bloomberg Although there has been some relief in
recent weeks for the shares of cryptocurrency mining companies,
they remain significantly negative. In order to pay off debt and
meet operating expenses in the most recent quarter, the miners were
forced to sell some of the Bitcoin they had been hoarding. Through
the third quarter, that persisted. Related Reading: Bitcoin Price
Trades A Little Over $24,000, Can It Target $27,000? Not just the
miners had huge losses last quarter; other members of the sector as
well. The biggest US cryptocurrency exchange, Coinbase Global Inc.,
reported a loss of US$1.1 billion, and MicroStrategy Inc. also
experienced a net loss of more than US$1 billion. Top public miners
mined 3,900 coins in June, but sold 14,600 of them, according to
Mellerud. In June, Core Scientific sold approximately 80% of its
coins to pay operating expenses and support growth. To stay
solvent, the miners are selling their assets and mining machines
and taking on more debt. Marathon expanded its previous US$100
million line of credit in July by refinancing it with a new US$100
million term loan from cryptocurrency-friendly bank Silvergate
Capital Corp. In addition, the miner sold its mining equipment for
US$58 million. With B. Riley Principal Capital II, Core Scientific
has signed a common stock purchase agreement for US$100 million.
Public corporations with significant Bitcoin holdings on their
balance sheets have been warned by the US Securities and Exchange
Commission not to exclude price fluctuations when reporting
results. Losses are not realized until the tokens are actually
sold. Related Reading: Bitcoin Funding Rates Remain Positive As
Bullish Sentiment Continues Featured image from Getty Images, chart
from TradingView, and Bloomberg
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