Amid a difficult 12 months for Bitcoin (BTC), with the main cryptocurrency being traded as little as $15,480 within the final quarter of 2022, after reaching its all-time excessive of $69,000 one 12 months earlier than, the Bitcoin mining trade can be struggling to maintain their operations going with unfavorable reported earnings.
Knowledge retrieved by Finbold from CompaniesMarketCap reveals that the 16 publicly traded Bitcoin mining firms have amassed over $4.47 billion in losses previously 12 consecutive months (TTM).
Core Scientific (OTC:CORZQ) is the highest loser with $1.66 billion in losses for the interval. Adopted by the 2 largest Bitcoin mining firms by market capitalization, that are each owned by BlackRock (NYSE: BLK), a latest main shareholder within the Bitcoin mining trade.
Each Marathon Digital Holdings Inc. (NASDAQ:MARA) and Riot Platforms Inc. (NASDAQ:RIOT) amassed over $600 million in losses year-over-year (YoY) every. All 9 Bitcoin mining firms with larger losses have unfavorable yearly outcomes of over $100 million.
Canaan Inc (NASDAQ:CAN) is the one optimistic firm among the many 16 trade leaders, with $92.33 million in earnings for the final 12 months.
Bitcoin mining trade at a loss
The Bitcoin mining issue elevated by 6.17% on August 22, reaching an all-time excessive of 55.62 trillion hashes.
With a sustained enhance in mining issue over time, Bitcoin miners are working ‘underwater,’ as the typical price to mine one single BTC has been superior to the typical value of 1 BTC within the spot market year-over-year since August 2022.
The common mining price is calculated by Cambridge College and plotted in a chart by MacroMicro. On August 27, it registered a mean price of $45,877 per mined BTC, towards a spot value of $26,089 on the identical day — accounting for a lack of $19,588 per unit of the main cryptocurrency produced cash.
Notably, the challenges confronted by the Bitcoin mining trade not solely negatively have an effect on every of those firms, however might additionally affect the entire Bitcoin ecosystem. Probably affecting its decentralization and safety, in addition to the market’s notion of the worth of BTC as a reserve forex and digital asset.
Anticipated to occur in April 2024 is the Bitcoin halving, which is able to halve (reduce by half) the block subsidy paid to miners for every mined block. Decreasing, much more, the Bitcoin mining firms earnings except there’s a significant surge in value for BTC.