Almost $4 Billion in Bitcoin Miner Loans Are Coming Under Stresswww.bloomberg.com/news/articles/2022-06-24/almost-4-billion-in-bitcoin-miner-loans-are-coming-under-stress
110 sats \ 4 comments \ @CypherPoet 24 Jun 2022 bitcoin
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0 sats \ 0 replies \ @BTCMiner 24 Jun 2022
Here's an archive of the article from Bloomberg's website. An archive has no paywall, no subscription requirement, and can be easier to read.
Almost $4 Billion in Bitcoin Miner Loans Are Coming Under Stress https://archive.ph/zHxsJ
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0 sats \ 0 replies \ @kilianbuhn 25 Jun 2022
Falling too much for the hashrate. Falling not enough to mine myself.
I have no hope to actually mine profitable in my apartment. Even if they would sell their asics for a dime, if I heated my apartment in the winter with it. Pity but not a big deal 🤷
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0 sats \ 1 reply \ @BTCMiner 24 Jun 2022
Few miners have defaulted on their loans so far, but recent sales are showing signs of distress. Core Scientific Inc. sold more than 2,000 Bitcoin in May to help cover operational costs. Meanwhile, Bitfarms Ltd. offloaded nearly half of its mined tokens earlier this month to pay down part of its $100 million loan with Galaxy Digital Holdings Ltd. It has also taken out another machine-backed loan from New York Digital Investment Group LLC.
The value of Bitmain’s popular S19 mining rig is down about 47% from a high of roughly $10,000 in November, according to data from Luxor Technologies Corp.
Vera estimates there’s up to $4 billion in loans backed by machines, which is on top of even more token-backed loans, first popularized in Asia with lenders like Babel.
If you factor in overhead costs for infrastructure and interest rates, the total costs for some miners may already be above $20,000, which is around Bitcoin’s current price, said Wilfred Daye, chief executive officer of Securitize Capital.
“Miners thought they would be in a better capital raising environment today,” Vera said. “They bought tens of thousands of machines, signed up for hosting, put the deposits down and now they can’t fulfill” obligations, he said.
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20 sats \ 0 replies \ @tenderscore 26 Jun 2022 freebie
It's good news for the most efficient miners (who remain profitable today and stand to gain from any hashpower reduction). Core Scientific isn't particularly a well run company. RIOT is tops here with their energy contracts, increasing hashpower efficiency, and debt/btc ratio. Bankruptcies seem likely among the small inefficient miners, but I doubt we'll see any; instead I'd expect consolidation. Plenty of bitcoin on the balance sheets of some miners to go shopping.
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