ASIC financing debt worsened Bitcoin miner’s liabilities in 2022: Report
According to recent reports, bitcoin miners have faced difficulties paying off their debts in 2022. report By hashrate index.
the report said.
“We estimate that there is between $2 billion and $4 billion worth of ASIC lending debt on private and public miner balance sheets.”
by analysisIn 2020, 6 ASIC loan deals worth $47.84 million were executed, and 26 deals worth $662.25 million were completed in 2021.
Since 2020, more and more equipment financiers have entered the market, resulting in an average interest rate of 10.46% in 2022, down from 12.77% in 2020 and 12.82% in 2021.
As a result, more deals were made in the first half of 2022. Of his 18 deals totaling $641.8 million, 16 of them ($576.8 million) were made in the first half.
However, market conditions deteriorated in the second half, and ASIC projects decreased. Several miners defaulted on these loans as miner revenues declined, with payments made in 2022. The survey outlines:
In our tally (known defaults from public miners), the total defaults are $227.4 million on the low end and $238.4 million on the high end.
Many of these loans were collateralized by ASIC itself, so in the event of default, many of these entities were ultimately turned over to their financial institutions.
According to data, BTC mining companies have $4 billion in debt, with Core Scientific at the top.
A difficult year for the mining sector
In 2022, defaults and bankruptcies rocked the mining sector. In addition to market conditions, miners have had to deal with high electricity bills and high costs. Mining difficulty recordAs a result, miner’s daily revenue plummeted from $63,548,000 on November 10, 2021 to $16,380,000 on December 31, 2022.
Some mining companies have begun selling assets as their debt burden has increased.this too Compute North 363 asset sale, after filing for bankruptcy, Compute North’s data centers were distributed to creditors. In addition, Argo Blockchain sold his Helios mining facility in Texas to Galaxy Digital for his $65 million and received a $35 million loan.
But the current situation also presents opportunities for those who can invest in assets and increase their margins through innovation. For example, Germany-based Bitcoin he miner Northern Data wants to take advantage of the current market conditions.
