Bitcoin Mining Companies Need to Better Manage Risk

This past year has created an unprecedented risk event for the Bitcoin community. While we’ve seen this level of spot price volatility before, the leverage within the mining community has reached record levels. This has compounded the effects of debt exposure with falling spot prices, increasing energy price and diminishing collateral value. Bad treasury management ran rampant in 2022 and led to a problem that financial hedges can solve and/or prevent.

Nathan Cox is the chief investment officer at Two Prime, which offers structured products and derivative strategies for digital assets and risk management. The answer will not be the same across the board, and we have already seen several casualties of the new bear regime. Our concern is that bitcoin miners have over-exposed themselves, and now face potential liquidation if bitcoin prices remain depressed for an extended period of time.Miners must incorporate sophisticated financial strategies, in line with energy and commodity companies who have come before them.

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Bitcoin mining ETF tops equity ETF market in new year's performance chartsBitcoin started the year on a bullish front both on the spot market and the traditional ETF market as welll. LFG🚀🚀 News like this🔥 Fully equipped Time to ape some $TINU TresorInu It's on $ETH and these guys build the first crypto marketplace!
منبع: Cointelegraph - 🏆 562. / 51 ادامه مطلب »

Japanese delegation to visit Canada to meet with battery, mining companiesJapanese delegation to visit Canada to meet with battery, mining companies. mining japan canada
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