The current market downtown is not only causing a financial crisis in the crypto industry but also affecting crypto miners. Many of the crypto miners are struggling for survival as their financial condition in recent months is not good. While some of them with good-positions are continuing their expansion.
Crypto Miners Current Strategy
Marathon Digital Holdings, Inc. is a digital asset technology company. It engages in mining cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets.
The crypto or mainly Bitcoin mining firm did not mining as much as the previous month as it hoped to. Its core activity is producing an asset that most of the investors are avoiding these days. And its rasping situation was compounded by an electricity price hike that haltered production at one of its Texas facilities.
According to its November 2022 update, Marathon announced its Bitcoin production and mining operation updates.
“In November, we strengthened our liquidity position, produced 472 bitcoin, and began improving the efficiency of our mining operations with new technologies,” said the CEO Fred Thiel.
“Given the current macro environment, we took proactive measures to reduce our revolver borrowings from $50 Million as of November 9 to $30 Million as of November 30. The combination of this debt repayment and our monthly production increased our unrestricted bitcoin holdings from 1,950 BTC on November 9 to 4,200 BTC as of November 30, and we ended the month with $61.7 Million in cash on hand.”
However, the Bitcoin mining firm hired the restructuring team at Weil Gotshal — the miner’s corporate attorneys — to evaluate opportunities from the Compute North Bankruptcy, as stated by Mr.Thiel.
As per its official recent announcement, Marathon had paid approximately $50 Million in operating deposits to Compute North entities. To date, the crypto mining firm has written off approximately $8 Million of these deposits. In November, it determined that approximately $22 Million of the remaining $42 Million were likely fully recoverable as deposits. The recoverability of the remaining $20 Million in deposits and other amounts previously impaired remain subject to the bankruptcy proceedings.
Marathon Digital is continuing to work with various parties involved to determine their ultimate recoverability. Its stock price, down around 85% year to date, is down almost 47% over the past month.
On the other hand, Riot Blockchain another quickly expanding bitcoin mining company seeking buying opportunities during the downturn. It seeks to grow its current hash rate capacity of 7.7 EH/s to 12.5 EH/s by the first quarter of 2023.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/12/11/crypto-miners-new-hope-in-the-current-market-condition/