Public Bitcoin mining companies plagued with $4B of collective debt

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Some Bitcoin miners are running against the clock to get out of debt. What lies ahead?

As pointed out by Hashrate Index, a debt-to-equity ratio of 2 or higher is considered risky in most industries. The graph below shows the extremely high debt-to-equity ratios currently being sported by some of the prominent Bitcoin miners.Considering that more than half of the 25 public bitcoin miners boast extremely high debt-to-equity ratios, the mining sector may come across potential restructurings and bankruptcy filings unless the bulls make a comeback.

While some companies may shut down or slow down operations to reduce liabilities, it will help sustainable miners expand their footprint as they buy out the competition’s equipment and facilities.Bitcoin miner Northern Data says it has no financial debt, expects $204M in revenue for 2022 On Dec. 20, Greenidge signed a $74 million debt restructuring agreement with the NYDIG, a fintech firm dedicated to Bitcoin.

As Cointelegraph reported, the NYDIG agreement would see the purchase of miners with approximately 2.8 exahashes per second of mining capacity. In exchange, the mining company would see a debt reduction of $57 million to $68 million.

 

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Core Scientific is the biggest debtor among the lot with $1.3 billion in liabilities on its balance sheet as of Sept. 30. Marathon, the second-biggest debtor, has $851 million in primarily convertible note liabilities.

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All the bitcoin miners are not profitable right now?

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[24/12 18:39] 🔥🔥🔥🔥🔥🔥🔥: [24/12 18:39] 🔥🔥🔥🔥🔥🔥🔥:

I hope it will be a long and cold bear market.

Guard ya grill & buckle 🆙- BearMarket deep crypto possibly may influence Bitcoin price action to test lows relative 2020, shake some miners to TapOut with shallow resolves or limited access to rescue funding dca allday Bitcoin

They should embrace Coredao_Org now

Over leveraged always get rekt in life

This is why I’m heavy on DigihostDGHI next to no debt, renewable miner operations and excellent controls in place. Can’t wait till we finally get dividends.

How tf does this even make sense

Bear crisis hit everyone very hard

It's time Bitcoin miners realize the technology Coredao_Org are trying to build and join to support the project by delegating their Bitcoin mining hash power so as to earn reward Core token.

CoreDao_Org

Those miners must take a look on Coredao_Org

Who will replace them in the future?

CoreDAO

They should look into

more debt

NEW MINERS READY TO JUMP IN WHEN THEY ARE BANKRUPT!🥳🤩

Coredao_Org have them all let them delegate hash power to gain revenue from coredao

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