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Prominent bitcoin mining firms like Riot Blockchain and Cathedra Bitcoin reported to liquidate their holdings creating skepticism about bitcoin (BTC) mining
For a long time now the crypto market has been in its pathetic conditions that now started showing its ill effects over other operations related to the industry. With the consistent dragging down of the crypto market into the mud leading several bitcoin miners to liquidate their asset holdings to maintain their relevancy. Bitcoin mining was considered a lucrative operation once but continuous stuttering of the crypto market, especially of bitcoin, led it losing its charm.
Bitcoin (BTC) mining was experiencing good times during bitcoin itself was in its good old days and has attained its all time high of $69,000. But it’s been seven months now the phase has gone and for a while now it’s been struggling around $30,000. This made priminiet companies in the bitcoin mining industry like Riot Blcokcahin to off load their stocks of BTC where it sold about 250 bitcoin (BTC) in April for $10 million.
This move could act as a slow degradation of the company’s plan to stock bitcoin to gain huge profits once the top cryptocurrency will reach maximum heights. However the ongoing bear run has extended more than expected and results putting completely opposite effect. The situation of Riot Blockchain to sell its bitcoin reserve is also worse considering bitcoin mining company’s efforts to set up an all new mining facility with capacity of 1-gigawatt, in Texas.
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The hit on small scale bitcoin miners have also been among one of their worst where many of them are exiting the industry. It’s hard for them to retain their operation given bitcoin’s fall of 12.7% in a month while about 33.8% since the beginning of this year. Cathedral Bitcoin is such a company that was forced to sell its 235 bitcoin (BTC) just to survive the ongoing crypto winter.
CEO of Cathedra, AJ Scalia in a statement said that the company has spent several weeks for a while in order to restructure their balance sheet and operations ensuring that Cathedra has quite a good position in order to ensure the ongoing economic downturn.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
