After claiming a string of impairment charges that fueled the crash in cryptocurrency prices, the top three US publicly traded bitcoin mining companies lost more than $1 billion in the second quarter.
Core Scientific Inc., Marathon Digital Holdings Inc., and Riot Blockchain Inc. posted net losses of $862 million, $192 million, and $366 million, respectively, for the three months ended June 30. That was shown in the most recent quarterly earnings call. Other significant miners such as Bitfarms Ltd. and Greenidge Generation Holdings Inc., which announced their results on Monday, have also written off the value of their holdings after bitcoin’s price fell about 60% during the quarter. was forced to
Shares of crypto mining companies have taken a breather in recent weeks, but they are still losing money this year. Miners have had to shift from hoarding bitcoin and sell their coins as they struggled to pay off debt and cover operating costs in recent quarters. That continued through the third quarter.
“Public miners are still dumping their bitcoin holdings at a faster rate than they are producing,” said Arcane Crypto analyst Jaland Mereld in a research note. , making July the second highest BTC sales month in 2022.”
Miners weren’t the only industry players hit hard last quarter. Coinbase Global Inc., the largest US cryptocurrency exchange, posted a loss of $1.1 billion, while MicroStrategy Inc. also posted a net loss of more than $1 billion.
Top public miners sold 14,600 coins in June, but produced 3,900, Mereld said. sold close to %. Bitfarms sold nearly half of its holdings to pay off his $100 million loan in the same month.
Miners are in more debt and are selling their holdings and mining equipment to survive. Marathon refinanced his existing $100 million line of credit in July, while he added a $100 million term loan to crypto-friendly bank Silvergate Capital Corp. The miner also sold his mining rig for his $58 million. Core Scientific has entered into an agreement with B. Riley Principal Capital II to purchase his $100 million common stock.
The U.S. Securities and Exchange Commission has warned publicly traded companies that hold large amounts of bitcoin on their balance sheets that they cannot remove price volatility when disclosing results. No loss materialized.
– With the help of Vildana Hajirik.
This article was provided by Bloomberg News.