Look at the hash rate pumping (~15%). I understand lots of unprofitable miners are coming back online as the price increases. This is what I don't understand
Price has been down while difficulty increased while fees have been decreasing. The halving is always hard on mining ops and my guess is Swan grew to fast and has run out of capital.
It also could be something else entirely. We could speculate all day I guess.
Tough break, mining isn't a magic money printer, but I thought it made sense for them to complement their financial services like the OTC desk, many shitcoin exchanges mine and it seemed to work for them, altough we cannot always see the inner workings since none of them are public
I'm not surprised. Swan's expansions have been pretty drastic and when you look at the mining and fee markets right now its gotta be rough.
Look at the hash rate pumping (~15%). I understand lots of unprofitable miners are coming back online as the price increases. This is what I don't understand
Price has been down while difficulty increased while fees have been decreasing. The halving is always hard on mining ops and my guess is Swan grew to fast and has run out of capital.
It also could be something else entirely. We could speculate all day I guess.
Is there any info on their mining operations? Which pool were they using?
I don't think they knew what they were doing as far as mining was concerned
Mining is a tough business for miners who have been doing it a long time
Most of Swan executives have a finance background
Max Keiser is an investor and board member/advisor
The company had too many people on payroll that were non essential
I volunteered at their conference last year and met a lot of non essential staff
I say non essential because they are not miners or developers or whatever
the company seems like a large meetup for southern California
You're probably right. Mining is super risky, but saying this now right before a massive bull run? IDK
True about the staff not really being "needed". I thought they weren't really paid much and received equity in the company instead.
what they should have done was buy, sell and auction hashrate
This way you can make money from mining w/o having to buy ASICs
Probably but I don't know.
Their timing was wrong.
They should have waited and launched their mining division after the halving date.
Tough break, mining isn't a magic money printer, but I thought it made sense for them to complement their financial services like the OTC desk, many shitcoin exchanges mine and it seemed to work for them, altough we cannot always see the inner workings since none of them are public
I think mining will go to appliance manufacturers and utilities will pay end users to mine in order to distribute Bitcoin's time chain.
As they say, the efficient companies close after the halving.