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Monday, August 15, 2022

Bitcoin Prices At Further Low Of 21% In 2 Weeks As Drop Hurts BTC Miners: Mirrors Mining Revenue In 2021 Before The Rise To $69K

As cryptocurrency-linked lending further creases the foreheads of industry heads, recent reports indicate that fall in Bitcoin prices has put mining loans worth billions under stress. According to Ethan Vera, the founder of Luxor Technologies, around $4B in loans that are backed by cryptocurrency mining rigs stand at serious default risk.

Bitcoin prices have sunk further and are 21% below even against two-week-old figures, and miners are being pummeled the most. Many loans that were assisted by mining machines have sunk deep.

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Vera says that miners are very jumpy about the loan figures, more so those having high ratios of collaterals.

At current rates of exchange in Bitcoin, just 14 SHA256-based mining rigs are in the black and have an electric cost of $0.05 per kilowatt-hour (kWh) as per statistics released by asicmineralvalue.com.

The foremost mining machines that are manufactured by Microbt and Bitmain father close to $2 and $4.5 a day while the electrical costs come to around $0.05 per kWh.

Miners Continue To Make Distress Sales Of Bitcoin To Recover Operational Costs

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The report also reveals that many miners are making distress sales of Bitcoins to bolster the cost of operations and that is revealed in last month’s figures when Core Scientific Inc. was forced to sell around 2,000 Bitcoins for meeting operational expenses.

Galaxy Digital lending head, Luka Jankovic, said that BTC miners are suffering the most in recent weeks. He pointed out that most operhaveons has turned net IRR-negative in recent times at the present levels. The prices of machines too have nosedived and are in the mode of price discovery. The situation has been complicated by volatile prices of energy and limited rack supply space.

While BTC miners are traditionally forced to dump during a bull market putting additional pressure on prices. Analysts believe that private miners with private holdings may have released enormous quantities of Bitcoins since February this year.

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