The liabilities for both public and non-private bitcoin mining companies exceed $1 billion.
According to sources, the entire group of Public bitcoin mining companies has liability assets valued at over $4 billion.
Mining Firms Also In Debt
Core Scientific, which has accrued debt of more than $1.2 billion, was at the top of the list of companies owning the greatest amount of these liabilities.
Since the start of this year, the cryptocurrency market has been swinging back and forth, recording lows and ever-lower depressed lows.
The mining industry has also been negatively impacted by this market downturn, thus it is not an isolated sector.
The CoreScientific crash, which occurred recently, demonstrated the market’s turbulence and unpredictability.
Despite being one of the pioneers and forerunners in the crypto mining industry, Corescientific has been quietly struggling with debt and liquidity issues that were kept a secret from the general public and other businesses until they became very obvious.
They had accumulated debts over a period of months that they occasionally paid late and occasionally couldn’t afford to repay.
It is worth noting, however, that Corescientific was not the only mining firm in the grip of debt and liquidation; some other firms experienced the same fate.
Marathon comes in second with a debt of more than $800 million, while Greenidge comes in third with a debt of more than $200 million.
Grrenidge, on the other hand, has moved to clear this debt by restructuring its system.
Market Crash Taking A Toll On Mining Firms
When looking at the debt to equity ratio, it becomes clear how much debt these mining companies have accrued.
Other companies, such as Argo, are also recorded to be in this debt via the debt to equity ratio statistics, which are used by analysts to detect debt or bankruptcy.
In addition, a bill for crypto mining legislation is still being debated in the United States. This bill is in response to recent events in the crypto space and the alleged negative impact crypto mining has on the economy.
However, this bill has been stalled because critics claim that regulating crypto mining could lead to capital flight in the country.
Miners have also been fudding their bags and dumping heavily on the market as a result of the crypt space’s perilous times following the FTC crash.
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