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 yr earlier than, the Bitcoin mining trade can also be struggling to maintain their operations going with unfavourable reported earnings.
Knowledge retrieved by Finbold from CompaniesMarketCap exhibits that the 16 publicly traded Bitcoin mining corporations have gathered over $4.47 billion in losses up to now 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 corporations 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) gathered over $600 million in losses year-over-year (YoY) every. All 9 Bitcoin mining corporations with greater losses have unfavourable yearly outcomes of over $100 million.
Canaan Inc (NASDAQ:CAN) is the one constructive 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 typical mining price is calculated by Cambridge College and plotted in a chart by MacroMicro. On August 27, it registered a median price of $45,877 per mined BTC, in opposition to 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 corporations, 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 (lower by half) the block subsidy paid to miners for every mined block. Decreasing, much more, the Bitcoin mining corporations earnings until there’s a significant surge in value for BTC.
