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- Argo has signed a letter of intent to sell 87 million shares
- BTC Price at the time of writing – $20,408.44
- Bitcoin requires a lot of computing activity – Experts
Argo Blockchain, a London-based Bitcoin mining group, was supposed to get $27 million from a strategic investor, but that didn’t happen.
Argo has informed the London Stock Exchange in a press release that it no longer believes that this subscription will be completed in accordance with the terms that were previously announced.
Argo had signed a letter of intent (LOI) on October 7 to sell an investor 87 million shares worth $27 million (£24 million) to alleviate its liquidity issues.
The mining industry faces multiple challenges
The mining industry is facing a crisis of existence due to rising energy costs and a slow cryptocurrency price. Additionally, environmental groups and legislators have maintained their advocacy for more stringent measures to limit mining’s negative effects.
On September 22, Compute North, a leading data center for crypto-mining, filed for bankruptcy in a US court.At the time it filed its papers, the business owed at least 200 creditors up to $500 million. The company stated, however, that the unit’s mining operations would not be affected by this step.
Core Scientific (CORZ), the largest Bitcoin mining company in the world, issued a warning the previous week that the unit might think about filing for bankruptcy in court if its financial situation did not improve.As soon as the news became public, its stock plunged 77 percent to as low as 23 cents.
In a filing, it stated that substantial doubt exists about the company’s ability to continue as a going concern for a reasonable period of time. Bitcoin’s price is mirrored by the amount of energy used by Bitcoin miners worldwide.
The associated energy consumption has also decreased as a result of the current price drop.As can be seen, the patterns of energy use and the price of BTC are the same.
The market’s supply-demand rule is the straightforward explanation for this trend.Miners are motivated to extensively mine coins as cryptocurrency prices continue to rise.
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Global energy consumption due to Bitcoin mining mirrors Bitcoin’s price
As more people join the mining community, it raises the cost of mining hardware.Miners, on the other hand, are forced to abandon the process and liquidate their operations when the market continues to fall.
The environmental impacts of crypto-mining are heavily criticized by a number of lawmakers in the United States.Particularly, Massachusetts Senator Elizabeth Warren has criticized its enormous energy consumption.She advocated for curbing environmentally wasteful cryptocurrencies in order to combat the climate crisis at a hearing of the Senate Banking Subcommittee last year.
She continued that Bitcoin consumes more energy than entire countries because it requires such a large amount of computing activity.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
