![]() Riot Blockchain sold 250 of the 466 bitcoins mined in May for about $7.5 million, while long-term holder Marathon Digital has refused to sell bitcoin for the first time since October 2020.Įven those big players don’t have enough bitcoin to move the coin’s price meaningfully. “A string of publicly traded miners who once have been forced to sell all their coins, some at fairly deep discounts,” said the co-founder of the Nasdaq-listed bitcoin mining company. This could be for a few hours or even days,” said Matt Schultz of CleanSpark. “Companies with variable power rates are likely to turn off machines during peak price periods. Miners are attempting to boost their profits by cutting costs and selling off some of their bitcoin, even though its price is at its lowest in 18 months, amid a deep crypto sell-off. “They are inevitably facing rising costs and a steep drop in revenue,” he said. “Utilities make up about 79% of bitcoin miners’ operating costs,” Alexander Neumueller, project lead at Cambridge University’s Bitcoin Electricity Consumption Index, told Insider. Publicly listed companies are selling their mining tokens at steep discounts to pay off bitcoin-backed debt and cover rising operating costs, which analysts told Insider could eventually lead to liquidations in the troubled region.Įlectricity costs are rising around the world, thanks to higher prices for natural gas and coal in the aftermath of Russia’s war on Ukraine, and in the US, prices will rise 5% this summer, the EIA forecast. Some publicly listed crypto miners have sold their bitcoins at steep discounts to cover rising costs.Īnalysts say companies with bitcoin-backed loans are at risk of collapse, and individual miners will be squeezed.īitcoin miners are struggling to remain profitable as energy prices rise and crypto prices tank, putting some major players at risk of collapse. The cost of electricity is rising, putting pressure on the profits of companies involved in energy-intensive bitcoin mining. Some major crypto miners have been forced to sell their bitcoins at a discount to cover the rising cost of electricity.
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