Bitcoin

Bitcoin Mining Industry Still Going On A Difficult Journey In 2022

Key Points:

2022 has been a rough year for the Bitcoin mining industry. However, this has not deterred mining firms from increasing their Bitcoin mining capabilities throughout 2022.
According to the Compass Mining report, Bitcoin miners increased their BTC mining hash rate amid the increasingly difficult mining landscape.
Some of these miners are currently in a perilous financial situation as a result of the ongoing bear cycle and the decline in the price of mining rigs; large miners have lately informed the market that they only have the limited cash flow to handle more than a few more weeks.

2022 has been a rough year for the Bitcoin mining industry, whose price has dropped from a peak of $69,000 in November last year to around $16,800 today. However, this has not deterred mining firms from increasing their Bitcoin mining capabilities throughout 2022.

According to the Compass Mining report, CleanSpark increased its BTC mining hash rate by 189% from 1.9 EH/s at the beginning of 2022 to 6.0 EH/s or over 62,000 miners as of today.

The hash rates of Bit Digital and Riot Blockchain increased by 157% and 148%, respectively. In addition, Bitfarms, Digihost, and Marathon Digital Holdings all upped their mining hash rates by 100%, the report said.

Early in 2022, Bitcoin miners were still optimistic. Some miners actually purchased Bitcoin in addition to mining it. For instance, Compass Mining says on January 10, 2022, Bitfarms reported it had bought 1,000 Bitcoin at an average cost of $43,200, increasing its Bitcoin holdings at the moment by 30%.

Both of these miners would eventually sell their coins at a large discount to increase their liquidity as the bear cycle reached its peak low and Bitcoin’s price fell over the first two quarters of 2022.

Inevitably, as mining power increased, the amount of Bitcoin produced rose throughout 2022. For instance, as of November 2022, Riot Blockchain had mined 4,872 BTC, compared to 3,812 BTC and 1,033 BTC generated in 2021 and 2020, respectively.

According to the report, CleanSpark has generated 4,157 BTC so far this year as opposed to 1,528 BTC mined in 2021. Leaving behind its previous record of 3,452 BTC mined in 2021, Bitfarms stated on December 21 that it had mined its 5000th BTC in 2022.

Some of these miners are currently in a perilous financial situation as a result of the ongoing bear cycle and the decline in the price of mining rigs; large Bitcoin miners have lately informed the market that they only have the limited cash flow to handle more than a few more weeks.

The devastating blow to Core Scientific forced the company to file for bankruptcy under Chapter 11 on December 21. In order to stay out of bankruptcy, Greenidge is likewise restructuring, while Argo Blockchain was taken off the LSE due to similar concerns.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.