Three largest miners lost $1 billion due to the market downturn

Experts note that public companies sell bitcoins faster than they have time to mine them

17.08.2022 - 07:30

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What’s new? During the second quarter of 2022, the three largest publicly traded bitcoin mining companies in the United States collectively lost more than $1 billion due to declining cryptocurrency prices. Core Scientific, Riot Blockchain, and Marathon Digital Holdings reported net losses of $862 million, $366 million, and $192 million, respectively, in their reports. According to Bloomberg, the miners had to sell most of their BTC reserves to pay off operating expenses. Arcane Crypto analyst Jarand Mellerud said that a record 6200 coins were sold during July.

Bloomberg’s material

More details about what is going on. Other first cryptocurrency mining firms, including Bitfarms and Greenidge Generation Holdings, also reported losses. Mellerud noted that publicly traded mining companies sell bitcoins faster than they can mine them.

In July, Ethereum mining profitability once again overtook bitcoin. For this month, the total mining revenue amounted to $596,33 million and $574,89 million, respectively. However, despite the negative performance of previous months, between July 12 and August 13, bitcoin mining revenue increased by 68%, from $13,92 million to $23,48 million.

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