The liquidity crisis in the crypto segment continues to spread. It looks like hardly any crypto exchange, broker, or lender will emerge unscathed from the bankruptcy tsunami. This also applies to Bitcoin miners who sell their Bitcoins almost as fast as they mine. Bitcoin miners are selling their coins at record levels, last seen in 2016. Most big mining players in the U.S face severe financial pressure, and some have already filed for bankruptcy. It seems to be the endgame!
Bitcoin miners’ daily revenue is currently sitting at 2020 levels or around $13.53 million every day. A Glassnode analysis has shown that to cover costs, miners are selling more bitcoin than they’re mining. The hash rate in the US has increased and pushed up bitcoin’s overall energy costs, even in relative terms.
Texas-based Compute North filed for Chapter 11 bankruptcy in September with $500 million in debts. The company plans to sell its mining facilities to the largest U.S. mining pool operated by Foundry Digital LLC (website), a subsidiary of Digital Currency Group (DCG), which is currently in trouble over the liquidity crisis in its subsidiary Genesis. DCG‘s other subsidiary, the crypto trust Grayscale Bitcoin Trust (GBTC), is trading at a 42% discount to Bitcoin’s price. Other big U.S. miners like Riot Blockchain are considerably underwater.
Core Scientific Inc., the largest US publicly-traded Bitcoin mining company in terms of computing power, said its loss for the first nine months of the year climbed to over $1.7 billion. The company posted a quarterly loss of $435 million and may be forced into bankruptcy by the end of November. The company also disclosed that it would not make its debt payments coming due in late Oct. and early Nov.