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Giant Bitcoin Miners Lost Around $1B During Crypto Winters in 2022

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  • Core Scientific, Riot Blockchain, and Marathon are top looser in the financial year 2022. 

The largest triad of publicly traded bitcoin mining companies collectively mirrored a loss of more than $1 billion in H2 this year. It is believed that the massive losses are because of ongoing volatility and downtrend of the crypto market. 

The top three leading US bitcoin miners are Core Scientific, Riot Blockchain, and Marathon Holding significant losses in the second quarter.   

Core Scientific suffered the biggest loss of the three with a loss of $862 million, of which Riot Blockchain lost $366 million and Marathon $192 million in a crypto freefall.

The downtrend and the crash in the crypto market forced bitcoin miners to sell off more Bitcoin holdings than before to pay for their debts and cover functioning costs from H1 into H2 in hopes of riding out things until things stabilize and regain. 

Jaranc Mellerud, a senior analyst at Arcane Crypto and an interview With Bloomberg, mentioned, “Public miners are still dumping their bitcoin holdings at a higher rate than their production rate.”

At the end of the first quarter of 2022, Bitcoin miners sold out approximately 14600 coins and have only mined 3900 coins until that time.  

According to a report in The Coin Republic, Bitcoin miners like Marathon Digital and Riot Blockchain sold more bitcoin in May than they created, a significant improvement over the first four months when they only sold roughly 30 percent of what they produced.

Recently Core Scientific has sold its 80% BTC holdings and has invested $100 million in stock purchasing with a collaboration of venture capital firm. 

According to data from CoinMarketCap, in the last seven days, Bitcoin was traded at its highest price of $25,135, and While writing this article, Bitcoin was trading at $23,485.  

The prices of Bitcoin have been decreasing over the last year, and these volatile prices are scaring the miners. Many crypto market analysts believed that Bitcoin mining was not worth it at this time.  

Nancy J. Allen

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