sign of the times.
US-based Bitcoin mining company Stronghold Digital Mining is on the verge of a devastating blow. cryptocurrency crash It rocked the industry this year.
according to To tom’s hardware, the company had to sell 25,200 mining rigs to pay off $67.4 million in debt. This implicitly acknowledges that hardware for generating cryptocurrencies is more expensive than expected mining returns, at least in the short term.
The move may foreshadow things to come. The value of cryptocurrencies has completely collapsed this year. wiped out 59 percent In the last six months alone, many industries, including the value and previously highly profitable crypto mining sector, are now feeling the heat.
However, it’s nowhere near game over for Stronghold. The company still owns 16,000 mining his rigs and consumes 50-55 megawatts of power, according to the company. tom’s hardware.
Technically, it even has the capacity to generate 165 megawatts of power across all working generators. The downside: Two of these plants burn coal waste, a by-product of mining operations.
Cryptocurrencies often gravitate toward dirty, cheap power. Even a few cryptocurrency companies Revive a dying coal-fired power plant.
So what’s next?according to tom’s hardwareStronghold hopes to weather the storm and make some key purchases once the crypto market is back on its feet.
However, the downturn in major cryptocurrencies such as Ethereum and Bitcoin has proven to be fairly persistent.Two tokens Value dropped 18% and 13% Alone last week.
This means that the once-very popular hardware used by companies like Stronghold to mine cryptocurrencies is no longer as attractive as it once was, especially given the price of graphics cards. I mean sharp drop.
While this price cut may be good news for gamers, it’s bad news for crypto mining businesses struggling to recoup their losses.
read more: Bitcoin mining firm sells 26,200 rigs to pay off $67 million in debt [Tom’s Hardware]