1 year ago
The terms of Bitcoin (BTC) fell by 64.68% to $16,870 from astir $47,766 astatine the opening of the year, CryptoSlate data shows. At the aforesaid time, stock prices of Bitcoin mining companies fell by 91% connected mean from their 52-week precocious prices, according to Compass Mining.
However, this has not deterred mining firms from expanding their Bitcoin mining capabilities passim 2022, arsenic per a Compass Mining report. CleanSpark, for instance, grew its BTC mining hash complaint from 1.9 EH/s astatine the commencement of 2022 to 6.0 EH/s oregon astir 62,000 miners to day — an summation of 189%, the Compass Mining study stated.
Bit Digital and Riot Blockchain bumped their hash complaint by 157% and 148%, respectively. Additionally, according to the report, Bitfarms, Digihost, and Marathon Digital Holdings each accrued their mining hash complaint by 100%.
The expanding mining capabilities inevitably led to accrued Bitcoin accumulation passim 2022. For example, Riot Blockchain has mined 4,872 BTC arsenic of November 2022 compared to 3,812 BTC and 1,033 BTC produced successful 2021 and 2020, respectively.
CleanSpark has produced 4,157 BTC year-to-date compared to 1,528 BTC mined successful 2021, arsenic per the report. On Dec. 21, Bitfarms announced that it had mined its 5000th BTC successful 2022, leaving down its grounds of mining 3,452 BTC successful 2021.
Miners bought BTC successful a bullish spirit, past sold them amid a liquidity crunch
In aboriginal 2022, contempt Bitcoin slipping acold beneath its all-time precocious of $69,000 acceptable successful Nov. 2022, miners were inactive bullish connected the market, the Compass Mining study stated. Therefore, galore miners proceeded to usage their currency reserves to acquisition BTC successful summation to mining them.
In the archetypal week of January 2022, Bitfarms announced the acquisition of 1,000 BTC for $43.2 million, expanding its BTC holdings by 30%. In the 2nd fractional of January, Argo Blockchain bought 172.5 BTC.
Bitfarms sold 7,309 BTC successful 2022, including the 1,000 BTC purchased successful January, portion Argo Blockchain besides sold astir of its BTC astatine overmuch little prices. Both firms besides borrowed ample sums — Bitfarms entered into a $32 cardinal mining instrumentality financing statement with BlockFi, portion Argo Blockchain released presumption of extended loans from New York Digital Investment Group — to money growth.
With the carnivore rhythm moving afloat steam, astir miners faced liquidity issues. Core Scientific got the astir brutal hit, starring it to declare bankruptcy nether Chapter 11 connected Dec. 21. Greenidge is besides undergoing restructuring successful bid to debar bankruptcy and Argo Blockchain was besides delisted from LSE amid bankruptcy fears.
The station Bitcoin miners accrued hash complaint and accumulation contempt falling BTC prices successful 2022 appeared archetypal connected CryptoSlate.
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