BlocksInform
The public bitcoin miners in the we collectively owe more than 4 billion dollars, with scientific core, marathon, and generation greenridge being the biggest debtors, according to the hash index data.
According to the , the largest obligor is basic science, with $1.3 billion in liabilities in September. 30. the miner has recently gone out of business. His level of indebtedness requires tens of millions of dollars a month to service his debt.
This means that even if the company had a positive cash flow, it could not meet its debt obligations because of falling Bitcoin prices. Therefore, its decision to declare insolvency.
Public Bitcoin Miners Were Responsible For 15% of BTC Mining
In particular, Core Scientific is the audience minor with the highest hashrate. Public miners were responsible for 15 percent of all bitcoin mines by 2022, and basic scientists are responsible for a quarter of that. It shows how hard a year it was for the miners.
15% of all bitcoin mined in 2022 was generated by publicly traded companies. The basic scientists, who have just declared bankruptcy, made up one-quarter. pic.twitter.com/MNKvAhkqra
— Jameson Lopp (@lopp) December 22, 2022
Marathon is the second largest debtor, with a debt of $851 million. Thankfully, most of his debts are in convertible notes that do not require monthly service payments. This has put her in a better position and does not put her out of business.
But the third generation of Greenridge doesn't have that opportunity. He is $218 million in debt and is now facing bankruptcy. He is working on a debt restructuring agreement that will reduce his debt, but he will also see most of his hashrate transferred to NYDIG.
Other state-owned mining companies, such as Terawulf, Norther Data, Argo, BitNile, Stronghold, Iris Energy and Bitfarms, round out the top 10. They are all more than $100 million in debt.
The majority of minors have a high debt ratio.
The most important problem for public minors is not their debt but their debt ratio. Generally speaking, a debt ratio of 2 or higher would be considered risky. Given the volatile nature of the crypto market, it ought to be lower.
But the debt-to-equity ratio of most public miners is much higher. Core Science reported 26.7, Greenridge 18.0, Stronghold 11.1, Argo 8.7 and Cathedra 5.3. More than half of the 25 bitcoin miners in public have more than 2 debt-to-equity.
Furthermore, with $4 billion in public mining debt and $2.2 billion in equity, the sector as a whole has a relatively high debt-to-equity ratio of 1.8. While many miners are attempting to restructure their debt, the future still appears bleak.
