Bitcoin (BTC) price fell 64.68% to $16,870 from around $47,766 at the beginning of the year. crypto slate the data shows. At the same time, the shares of Bitcoin mining companies have fallen by an average of 91% from their 52-week high. compass mining.
However, according to Compass Mining, this has not deterred mining companies from improving their bitcoin mining capabilities throughout 2022. reportFor example, CleanSpark has grown the BTC mining hash rate from 1.9 EH/s in early 2022 to 6.0 EH/s, or about 62,000 miners to date. Compass Mining reports an increase of 189%.
Bit Digital and Riot Blockchain increased hashrate by 157% and 148% respectively. Additionally, according to the report, Bitfarms, Digihost and Marathon Digital Holdings each increased their mining hash rate by 100%.
Increased mining capacity has inevitably increased Bitcoin production throughout 2022. For example, Riot Blockchain said he has mined 4,872 BTC as of November 2022, compared to 3,812 BTC and 1,033 BTC. produced 2021 and 2020 respectively.
Miners Bullish BTC, Sell Amid Liquidity Crisis
In early 2022, miners were still bullish in the market, even though Bitcoin was well below the high of $69,000 set in November 2022, according to a Compass Mining report. So many miners started using their cash on hand to buy his BTC in addition to mining.
Bitfarms sold 7,309 BTC in 2022, including 1,000 BTC purchased in January, and Argo Blockchain also sold most of that BTC at a much lower price. Both companies also borrowed heavily — Bitfarms It has entered Having signed a $32 million mining equipment financing agreement with BlockFi, Argo Blockchain has announced a major loan term from the New York Digital Investment Group to finance its growth.
Most miners faced liquidity issues as the bearish cycle went full steam ahead. Core Scientific suffered the most brutal blow, declare bankruptcy Under Chapter 11 on December 21st. Greenidge is also restructuring to avoid bankruptcy, and Argo Blockchain has been delisted from the LSE amid fears of bankruptcy.