Cryptocurrency

Bitcoin miner revenue down 37.5% in 2022 YoY

Hull Invest

Bitcoin mining revenue dropped to $9.55 billion in 2022. $15.3 billion 2021 – 37.5% decrease.

Since the peak of its massive rally in 2021, cryptocurrencies have lost more than $2 trillion in market cap to below $900 billion.was there Bitcoin is the world’s largest digital coin, down more than 70% since hitting an all-time high near $69,000 in November. Moreover, the failure of several high-profile companies and projects in the past year has created shockwaves.

It all started with the collapse of terraUSD in May. This has led to the bankruptcy of other companies like Three Arrows Capital, a crypto-oriented hedge fund.Then in November The bankruptcy of FTX, one of the world’s largest cryptocurrency exchanges, has affected the industry.

Additionally, rising interest rates, along with crypto-specific failures, are putting pressure on risky assets such as stocks and cryptocurrencies.

The downturn also affected miners as investors became wary of volatile assets. Apart from market conditions, miners were also facing high electricity costs and record mining difficulties. In 2022, mining difficulty reached a record high due to rising hash rates, and some miners struggled with profitability.

As a result, miner’s daily revenue plummeted from $63,548,000 on November 10, 2021 to $16,173,000.

Miner Daily Revenue Change in 2022 (Source: Blockchain.com)
Miner Daily Revenue Change in 2022 (Source: Blockchain.com)

Mining companies hit hard in 2022

The Hashrate Index shows that many mining companies have more than tripled their debt-to-equity ratios, indicating greater financial leverage.

public miner
Debt ratio

Core Scientific has the highest debt-to-equity ratio at 26.7, followed by Greenwich and Stronghold at 18 and 11.1 respectively. Argo also has a high debt ratio of 8.7.

According to Core Scientific Balance sheet, as of September 30, the company has the largest amount of debt, with $1.3 billion in debt. The second largest debtor is Marathon, who has $851 million in debt.

public miner debt
liabilities

As a result, miners with high debt-to-equity ratios such as Core Scientific (CORZ) have filed for bankruptcy. Meanwhile, Greenidge Generation (GREE) and Stronghold Digital Mining have restructured debt debt.

Bearish sentiment in 2022 has reduced miner profitability. Bitcoin profitability is measured in dollars per terahash, or TH per second. Bitcoin mining at its peak in 2017 generated It was $3.39/TH per second, dropping to $0.104/TH by 2022.

Prominent public mining companies have suffered significant losses, averaging more than 90% in 2022.

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