Under the conditions of poor market conditions, the stock prices of various listed mining companies have fallen. Last year’s high-profile financing and procurement of mining machines to increase the proportion of computing power have disappeared, and some mining companies have begun to sell mining production to pay for operations. overhead.
Mining difficulty
The difficulty of Bitcoin mining reached a record high of 31.25T in May. Since then, after the collapse of Terra and the liquidity crisis of Celsius and other CeFi platforms, the computing power began to decline, and Bitcoin also fell by 50% from the level of $40,000 at that time.
Under the conditions of poor market conditions, the stock prices of various listed mining companies have fallen. Last year’s high-profile financing and procurement of mining machines to increase the proportion of computing power have disappeared, and some mining companies have begun to sell mining production to pay for operations. overhead.
The number of bitcoins sold by some miners in June even exceeded the total bitcoins mined that month.
Marathon Digital Holdings
Q2 mining volume: 707BTC (up 8% from Q2 in 2021)
637BTC sold at an average price of $24,500 in June
10,055BTC held as of 6/30
Marathon emphasized that it has not sold any bitcoin since October 2020 but may sell a portion of the monthly mining output based on demand in the future to cover day-to-day operating costs.
Its shares have fallen 79% this year.
Argo Blockchain
According to the Argo announcement, the relevant data is as follows:
Mining volume in May: 124BTC
Mining volume in June: 179BTC
637BTC sold at an average price of $24,500 in June
1,953BTC held as of 6/30
That said, Argo mined only about 28.1% of the bitcoin it sold in June. Argo shares have fallen 69% this year.
However, Argo still intends to deploy more computing power. The Bitmain S19JPro mining machine purchased in June will be launched on schedule, and it is expected to deploy 20,000 mining machines by October.
Bitfarms: No more accumulating BTC
3,000BTC sold at an average price of about $20,666 in June
3,349BTC held as of 6/21
According to the press release, Bitfarms conducted debt balancing considering market volatility, selling 3,000 BTC for $62 million, which was used to repay part of the $100 million credit provided by Galaxy Digital.
Chief Financial Officer Jeff Lucas said that although the company is optimistic about the appreciation of Bitcoin for a long time, to continue to expand its business, it has adjusted its HODL strategy, that is, it will no longer accumulate BTC.
Bitfarms shares are down 79% this year.
Core Scientific
Mining volume in June: 1,106BTC (-2.8% compared to May)
7,202BTC sold at an average price of $23,000 in June
8,058BTC held by the end of May
According to the announcement, the sale of 7,202 BTC brings $167 million in cash to Core Scientific, which will be used to purchase equipment, expand data centers, and pay term loans.
What attracts attention from all walks of life is that the amount of Bitcoin sold is very high for Core Scientific, which is equivalent to nearly 90% of the BTC stock sold. Its shares are down 86% this year.
other mining companies
The rest of the mining companies also issued separate statements:
Hive Blockchain (code HIVE | -77.29% drop this year): It plans to sell BTC production to continue expanding, while trying its best to maintain BTC reserves, firmly believing that BTC and ETH will prosper again after deleveraging.
Hut8 (HUT|-82.79%): As of 6/30, it holds 7,406BTC and continues to work on the HODL strategy.
Iris Energy (IREN|-80.86%): Since mining in 2019, the daily settlement of BTC mining rewards will remain unchanged in the future.
Riot Blockchain (RIOT|-80.12%): Produced 421BTC in June, sold 300BTC, and held 6,654BTC as of June 30.
Compass Mining: The scale is expanding too fast, and it is expected to lay off 15% of the workforce.
Post time: Sep-03-2022