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Bitcoin miners are no longer swimming in profits since the crypto winter’s arrival. From individual miners to the institutional miners, everyone seems to have received a harsh blow in this sector. Recently, BTC miners active in Sweden and Norway, seeking refuge from expensive electricity costs, are going into “sleep mode” in winter due to energy tariffs surge.
Miners Regretting Their Decision
European miners entered the regions a few months ago following abundant hydroelectric energy and low demand. But the move has backfired and now they are left with soaring values. This is just the beginning of the season and prices are expected to increase in coming weeks. According to Nordpool, an European power exchange, northern Norway has averaged 18 US cents kWh this year, a fourfold average in the past three years.
The crypto mining industry is seeing a lot of chaos in recent times. Core Scientific, a cryptocurrency mining company, has filed for bankruptcy. They were already suffering a lot of damages due to lower profits from the declining crypto market. They previously said that the organization already has an $7 Million unpaid debt from Celsius, a company that went bankrupt after LUNA collapsed.
In other news, British Columbia’s state-owned electricity provider halted any request associated with crypto mining. The authorities want to work on an infrastructure that would balance the needs from digital asset mining, businesses and their citizens. They are focusing on an eco-friendly environment to generate more employment in the nation.
Bitcoin miner, Greenidge, revealed in a Securities and Exchange Commission (SEC) filing that they agreed on a $74 Million restructuring deal with their partners NYDIG, a fintech company. The deal would allow NYDIG to acquire miners with around 2.8 EH/s mining capacity to be hosted by the BTC miner. In November 2022, the company used approx $8 Million of their cash during operations.
Crypto community is not expected to see any significant rise in the market anytime soon, experts believe. Bitcoin is maintaining a range between $16.6K to $16.88K today. The flagship asset has lost over 70% value since the November 2021 peak. Ethereum stays contained in the consolidation phase for a week now. The blockchain successfully transitioned their operations on their proof-of-stake based Beacon Chain. However, the move did not “move” the asset’s price significantly.
Next year may bring more challenges to the sector as the volatile market has grabbed the attention of the regulators. Recently, Pat Toomey, US Senator, introduced a crypto bill dubbed Stablecoin TRUST Act which may help Congress to guide “sensible crypto regulations”. Moreover, the recent collapse of FTX may cause more dominoes to fall in 2023.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
