The Wall Street Journal reports that the price of Bitcoin miners has fallen significantly from last year, following the collapse of the digital currency.
The Wall Street Journal reported on Saturday that the price of Bitcoin miners is 77% lower than it was last year.
These machines “currently cost about $24 per 100 terahs (a measure of computing power), while last year the cost was about $106 per 100 terahs,” the newspaper said.
The report added that “mining companies such as Core Scientific expanded rapidly at the beginning of the coin trading and mining market, and they borrowed millions of dollars to purchase necessary mining machines and equipment,” noting that “these operations were profitable when cryptocurrencies such as Bitcoin and crypto were booming.”
As soon as the Federal Reserve raised interest rates, this market became less attractive as a market dependent on riskier assets, and thus cryptocurrency stocks fell sharply.
And she continued, “When bitcoin collapsed (it is down about 70% from last year), the cost of mining companies’ expenditures, especially their debt payments, exceeded the value of revenue,” adding: “For some, their only movement to raise funds at the moment is to Sell their equipment.
Core Scientific, one of the world’s largest mining companies, announced Wednesday that it will not make payments on many of its equipment and other financing operations, as it is expected to run out of cash by the end of the year.
As a result, the company’s stock fell sharply amid fears of the company’s bankruptcy, as its share was traded on Friday at nearly 16 cents, a drop of 99% since the beginning of the year.
According to the report, other mining companies have also witnessed a sharp decline in the value of their shares, adding that Argo Blockchain PLC said last week that it will sell 3,800 completely new machines, which are modern equipment that it has not used until now, to raise capital.
The report pointed out that these events “attract buyers of distressed assets.”
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