Bitcoin Miners Suffer Over $1 Billion Loss In Q2 2022

After incurring a fig of impairment losses brought connected by the diminution successful cryptocurrency prices, the 3 biggest US publically traded Bitcoin mining companies mislaid much than US$1 cardinal successful the 2nd quarter.

Bitcoin Miners In Deep Red

In the 3 months that ended June 30, Core Scientific Inc., Marathon Digital Holdings Inc., and Riot Blockchain Inc. each reported nett losses of US$862 million, US$192 million, and US$366 million, respectively. Following the astir 60% diminution successful the terms of Bitcoin during the quarter, different ample miners specified Bitfarms Ltd. and Greenidge Generation Holdings Inc., which released results connected Monday, were besides obliged to constitute down the worth of their holdings.

Source: Bloomberg

Although determination has been immoderate alleviation successful caller weeks for the shares of cryptocurrency mining companies, they stay importantly negative. In bid to wage disconnected indebtedness and conscionable operating expenses successful the astir caller quarter, the miners were forced to merchantability immoderate of the Bitcoin they had been hoarding. Through the 3rd quarter, that persisted.

Not conscionable the miners had immense losses past quarter; different members of the assemblage arsenic well. The biggest US cryptocurrency exchange, Coinbase Global Inc., reported a nonaccomplishment of US$1.1 billion, and MicroStrategy Inc. besides experienced a nett nonaccomplishment of much than US$1 billion.

Top nationalist miners mined 3,900 coins successful June, but sold 14,600 of them, according to Mellerud. In June, Core Scientific sold astir 80% of its coins to wage operating expenses and enactment growth.

To enactment solvent, the miners are selling their assets and mining machines and taking connected much debt. Marathon expanded its erstwhile US$100 cardinal enactment of recognition successful July by refinancing it with a caller US$100 cardinal word indebtedness from cryptocurrency-friendly slope Silvergate Capital Corp. In addition, the miner sold its mining instrumentality for US$58 million. With B. Riley Principal Capital II, Core Scientific has signed a communal banal acquisition statement for US$100 million.

Public corporations with important Bitcoin holdings connected their equilibrium sheets person been warned by the US Securities and Exchange Commission not to exclude terms fluctuations erstwhile reporting results. Losses are not realized until the tokens are really sold.

Featured representation from Getty Images, illustration from TradingView, and Bloomberg