Shares of listed mining companies have fallen amid poor market conditions, and some have started selling production to cover operating expenses, as last year’s boom in raising funds and buying mining machines to boost their computing share has gone.
Bitcoin mining difficulty reached an all-time high of 31.25T in May. Since then, as CeFi platforms like Terra crashed and Celsius plunged into a liquidity crisis, Bitcoin has dropped 50% from its $40,000 level.
Shares of listed mining companies have fallen amid poor market conditions, and some have started selling production to cover operating expenses, as last year’s boom in raising funds and buying mining machines to boost their computing share has gone.
In June, some miners sold more bitcoins than they mined that month.
Marathon Digital HoldingsQ2 Mining volume:
707BTC(up 8% from Q2 2021) Sold 637BTC in June at $24,500 average price as of 6/30 Hold 10,055BTCMarathon stressed that it has not sold any bitcoin since October 2020, but will likely sell a portion of its monthly mining output in the future as needed to cover day-to-day operating costs.
Its shares are down 79% this year.
According to Argo’s announcement, the relevant data are as follows: May mining volume: 124BTC June mining volume:
179BTC sold 637BTC at an average price of $24,500 in June and held 1,953BTC as of 6/30. In other words, Argo’s mined bitcoin in June accounted for only about 28.1% of its sold bitcoin.
Argo shares are down 69 per cent this year.
But Argo still plans to deploy more computing power. The BitContinental S19JPro miner it bought in June is on schedule to come online, and 20,000 miners are expected to be deployed by October.
Bitfarms:
No longer accumulating BTC sold 3,000BTC in June at an average price of about $20,666 Held 3,349BTC as of 6/21 According to a press release, Bitfarms, which balances its debt to account for market volatility, sold 3,000BTC for $62 million,
And to repay some of Galaxy Digital’s $100 million credit facility.
Chief Financial Officer Jeff Lucas said that while the company is bullish on bitcoin over the long term, it has adjusted its HODL strategy to no longer accumulate BTC in order to continue to expand its business.
Bitfarms shares are down 79% since the start of the year.
Core Scientific June mining volume:
1,106BTC(-2.8% from May) Sold 7,202BTC in June at an average price of $23,000 Held 8,058BTC at the end of May as announced, the sale of 7,202BTC generated $167 million in cash for Core Scientific,
It will be used to purchase equipment, expand data centers, pay term loans, etc.
What is striking is that the amount of bitcoins sold is a very high percentage for Core Scientific, equivalent to selling nearly 90% of BTC’s stock.
Its shares are down 86% this year.
The rest of the miners rest miners also issued a statement individual: Hive Blockchain (code Hive | fall to 77.29% this year), plans to sell BTC production to continue to expand, at the same time try to maintain the BTC reserves, believes that BTC, ETH after deleveraging will flourish again.
Hut8 (HUT | – 82.79%) : as of 6/30 hold 7406 BTC, continue to HODL strategy.
Iris Energy (IREN | – 80.86%) : since mining 2019 daily clearing BTC dig rewards, the future strategy remains the same.
Riot Blockchain (Riot | – 80.12%) : output in June 421, BTC, selling 300 BTC, hold 6654 BTC as of 6/30.
Compass Mining: Expanding too quickly, expects to lay off 15% of its workforce.