The owners of the largest cryptocurrency mining farms have lost more than $ 1 billion over the past six months
Against the background of the collapse of the cryptocurrency market, the largest mining companies suffer huge losses. Three behemoths of this market Core Scientific, Marathon and Riot have lost more than $1 billion since the fall of Terra, according to Bloomberg.
The last six months have generally been extremely difficult for these companies. In June, it was reported that farms had sold 14,600 bitcoins in total, while mining only 3,900 coins. By the way, Core Scientific sold 80 percent of its crypto assets to prevent bankruptcy.
BTC’s rebound to 25k last week helped companies bounce back some losses, but the situation remains deplorable. Stronghold Digital Mining recently announced that it is giving the lion’s share of the equipment (26 thousand units – approx) to the creditor in order to pay off the debt. Thus, the company will fully repay the loan in the amount of 67.4 million dollars, but will significantly reduce its capacity.
In addition to companies that are engaged in mining “for distribution”, crypto-lending platforms also got into it. So the popular platform Genesis announced a forced reduction of 20% of the staff. It is worth noting that not only ordinary employees were fired, but also the CEO of the platform, Michael Moreau.
Plus, Genesis announced a change in the entire business model of the company and announced that it was closing all non-profit areas. The management promises that these are all temporary measures, and as soon as the inflow of capital of digital currencies resumes, the company will revive frozen projects.
Before his departure, Michael Moreau stated:
“The platform is very popular among experienced investors. They not only conduct transactions through us, but also store the cryptocurrency on the site.”