Largest Bitcoin mining companies lost over $1 billion last quarter, some are selling mining...

[Tudor Cibean]

In brief: Bitcoin mining concerns have reported huge losses in the past quarter due to the collapse of cryptocurrency prices. Some are selling their coin holdings and mining rigs and even taking out loans to pay for operational expenses and stay afloat.

According to a Bloomberg report, the three biggest Bitcoin mining companies traded on the US stock market lost over $1 billion in the second quarter. The firms had to write down the value of their holdings due to the massive drop in cryptocurrency prices in the past months.

Bitcoin's value dropped by almost 60 percent in the three months ending on June 30, from around $45,000 to under $20,000. Other cryptocurrencies dipped even more in price, with GPU-mineable Ethereum losing two-thirds of its value in the same period.

Core Scientific, Marathon Digital Holdings, and Riot Blockchain reported net losses of $862 million, $192 million, and $366 million, respectively, in the last quarter. Other crypto-mining companies, such as Bitfarms and Greenidge Generation Holdings, also took impairment charges.

Miners are selling Bitcoin holdings at a higher rate than they are producing new ones. June saw the highest Bitcoin offloading this year, with top public miners selling 14,600 coins but producing only 3,900. In June, Core Scientific may have sold almost 80 percent of its holdings to cover operational costs and fund expansion, while Bitfarms sold nearly half its coins. The trend seems to continue into the third quarter, as July was the second highest selling month, with 6,200 coins sold.

The companies are also selling their mining rigs and taking out loans in an attempt to stay afloat. Marathon Digital allegedly received an additional $100 million term loan and sold off mining rigs to raise a further $58 million. Meanwhile, Core Scientific is going for a $100 million common stock purchase deal with a private equity firm.

Miners weren't the only ones in the crypto industry that registered massive losses in the second quarter. Coinbase, the largest cryptocurrency exchange in the US by trading volume, lost approximately $1.1 billion. The company laid off over 1,000 employees in June, while its CEO mentioned we might be looking at an extended crypto winter.

Permalink to story.

https://www.techspot.com/news/95663-largest-bitcoin-mining-companies-lost-over-1-billion.html

 

[Fearghast]

That's really rough, but when you consider you pretty much gamble on the value of said Crypto, it's starting to sound just like a gambler that run out of luck and crashed hard.

 

[SirDigby]

Oh no, I'm so sorry to hear that /s

 

[psycros]

And who got out at the top? Why, the usual suspects, of course..financial conglomerates and criminal syndicates. Everyone else is a hustler always one step from total ruin.

 

[VitalyT]

Raising money, to stay afloat with crypto mining. This is f-d up beyond words. Those parasites are worse than bankers.

 

[JKnight]

They are selling parts to stay afloat what happens when no one is willing to buy.

 

[Irata]

Miners weren't the only ones in the crypto industry that registered massive losses in the second quarter.

And here I thought you‘d mention one of the major mining suppliers


Yes, they did not post an actual loss, just loss of sales.

 

[Irata]

And who got out at the top? Why, the usual suspects, of course..financial conglomerates and criminal syndicates. Everyone else is a hustler always one step from total ruin.

That‘s how pyramid schemes work.

 

[wiyosaya]

Cry me a river!

I expect that this will also produce a surplus of used coal-fired power plants on the market.

 

[terzaerian]

Crypto winter is a healthy part of the cycle - like actual winter, it kills off locusts and other short-sighted pests.

Considering this winter is also a byproduct of the macro-economic cycle, though, it's amusing to me to see the normies that are just as dependent on the same macro-economic system cheering this on. Enjoy stagflation and skyrocketing fuel and food costs, I guess? More fools cutting off their nose to spite their face.

 

[WhoCaresAnymore]

It just breaks my heart...

 

[wiyosaya]

Crypto winter is a healthy part of the cycle - like actual winter, it kills off locusts and other short-sighted pests.

Considering this winter is also a byproduct of the macro-economic cycle, though, it's amusing to me to see the normies that are just as dependent on the same macro-economic system cheering this on. Enjoy stagflation and skyrocketing fuel and food costs, I guess? More fools cutting off their nose to spite their face.

Skyrocketing fuel costs? Around my area, gas prices are dropping, and I believe that around the US, the average gas price around $4.00/gal again, and some states predicted to hit $3.00/gal.

Personally, I think it is more likely that people are finally realizing that crypto, as an investment, is probably not even as good as junk bonds.

 

[terzaerian]

Skyrocketing fuel costs? Around my area, gas prices are dropping, and I believe that around the US, the average gas price around $4.00/gal again, and some states predicted to hit $3.00/gal.

Personally, I think it is more likely that people are finally realizing that crypto, as an investment, is probably not even as good as junk bonds.

Celebrating fuel costs "dropping" to a mere 4.00 a gallon is about as intellectually dishonest as the "Mission Accomplished" banner Bush rolled out back in the day. I thought the left was above such intellectual chicanery.

 

[terzaerian]

Regardless, this is my rule of thumb: treat crypto like a casino, and you'll get casino returns. Treat it like an investment, and you'll get investment returns.

Considering the losses my stocks have suffered this year are outpacing my losses on crypto I think I have done fairly well.

 

[wiyosaya]

Celebrating fuel costs "dropping" to a mere 4.00 a gallon is about as intellectually dishonest as the "Mission Accomplished" banner Bush rolled out back in the day. I thought the left was above such intellectual chicanery.

So who's really behind it all, though? To me, its profiteering by all those "big oil" companies who just announced record profits. Neither left nor right politicians control the prices those companies slap on gasoline. After all, its the "free market" that sets those prices - at least as I see it. Maybe Big Oil is worried about the ultimate demise of fossil fuel and are trying to get their share of profits before modern society really considers fossil fuels "fossilized".

Besides, I have driven a Prius since 2006. At around 50MPG and with a 10.9 Gallon fuel tank, I barely notice how much it costs me to fill that tank.

I pulled into a gas station recently just after someone in a pickup got through filling and I thought "Holy crap. That guy just filled his tank for $90 or so." My "toll" was around $30 on that day.

 

[umbala]

Raising money, to stay afloat with crypto mining. This is f-d up beyond words. Those parasites are worse than bankers.

Yeah, the idea there is to "stay afloat" long enough for prices to bounce back, so they can ride the next crypto wave (*eyeroll*) which is what they're all expecting to happen. I hope to hell it NEVER happens. I hope prices of all crypt bottom out and all these parasites get what they sorely deserve.

 

[umbala]

Crypto winter is a healthy part of the cycle - like actual winter, it kills off locusts and other short-sighted pests.

Considering this winter is also a byproduct of the macro-economic cycle, though, it's amusing to me to see the normies that are just as dependent on the same macro-economic system cheering this on. Enjoy stagflation and skyrocketing fuel and food costs, I guess? More fools cutting off their nose to spite their face.

Everything you said is complete nonsense. You seem to think this garbage phrase "crypto winter" somehow guarantees that "crypto summer" is just around the corner, if all the gamblers would just hold out long enough.

Crypto is a Ponzi scheme, plain and simple. It has no value and it has no assets of any kind backing it. The only way to make money off crypto is to find a bigger fool than yourself who's willing to pay a higher price for it. PERIOD. All that other nonsense about macro-economics where you tried to sound smart, that's all just noise.

 

[VaRmeNsI]

Crypto follows the stock market bubble, if the Fed keeps raising rates it will fall, if they chicken out and lower rates you'll get another bull run.

China stimulus might also push it up as Yuan devaluation will encourage capital flight.

 

[hwertz]

Taking out loans? How in the hell. I would have thought these companies would have sold of enough coins for "fiat currency" over the years to be awash in both bitcoins and cash, not have to take out loans and sell off rigs at fire sale rates just to cover operational costs. I could see selling off hardware, I suppose part of it is the crossover point where mining electricity costs exceed the value of the bitcoins, some companies may just be cashing out mining hardware (they could buy newer, more energy-efficient mining hardware later if the price went back up). But if they're really having to sell it just to cover operational expenses (which it sounds like is the case)... wow.