Bitcoin miner revenue down 37.5% in 2022 YoY

Bitcoin mining gross was down to $9.55 cardinal successful 2022 from $15.3 billion successful 2021 – a 37.5% decline.

Since the highest of a monolithic rally successful 2021, cryptocurrencies person mislaid much than $2 trillion successful marketplace headdress to scope beneath $900 billion. There has been more than a 70% driblet successful Bitcoin, the world’s largest integer coin since it reached an all-time precocious of astir $69,000 successful November. In addition, respective high-profile institution and task failures person sent daze waves successful the past year.

This each began successful May with the collapse of terraUSD, which brought down different firms similar Three Arrows Capital, a crypto-oriented hedge fund. Then, successful November, FTX, 1 of the world’s largest cryptocurrency exchanges, collapsed, affecting the industry.

Additionally, rising involvement rates person enactment unit connected hazard assets, specified arsenic stocks and crypto, on with crypto-specific failures.

As investors became wary of volatile assets, deteriorating marketplace conditions besides affected miners. Aside from marketplace conditions, miners besides faced precocious energy costs and record mining difficulty. In 2022, mining trouble reached a grounds precocious owed to an summation successful hash rate, which near immoderate miners struggling for profitability.

Due to this, the miner’s regular gross has fallen sharply to $16.173 cardinal – down from $63.548 cardinal connected Nov. 10, 2021.

Change successful regular miner’s gross successful 2022 (Source: Blockchain.com)

Top Mining firms suffered successful 2022

According to Hashrate Index, the debt-to-equity ratio much than tripled for galore mining firms, indicating greater fiscal leverage.

Debt to equity ratio

Core Scientific has the highest debt-to-equity ratio astatine 26.7, followed by Greenidge and Stronghold astatine 18 and 11.1, respectively. Argo besides has a precocious debt-to-equity ratio of 8.7. 

According to Core Scientific’s balance sheet, arsenic of Sept. 30, the institution owed the most, with $1.3 cardinal successful liabilities. The second-largest debtor is Marathon, with $851 cardinal successful liabilities. 

Liabilities

As a result, miners with precocious debt-to-equity ratios, specified arsenic Core Scientific (CORZ), filed for bankruptcy. Whereas Greenidge Generation (GREE) and Stronghold Digital Mining restructured their indebtedness obligations.

Due to the bearish sentiment successful 2022, miners’ profitability suffered. Bitcoin’s profitability is measured successful dollars per terahash, oregon TH, per second. During its highest successful 2017, bitcoin mining generated $3.39/TH per second, but it dropped to $0.104/TH successful 2022.

Prominent nationalist mining companies suffered sizeable losses successful 2022 that roseate implicit 90% connected average.

The station Bitcoin miner gross down 37.5% successful 2022 YoY appeared archetypal connected CryptoSlate.