Saturday, December 2, 2023

Bitcoin miners sell their hardware and ASIC prices continue to fall?

Many crypto companies have gone out of the market in recent market crashes. Crypto mining companies are no exception. The CEO and CFO of Compass Mining had to resign after facing allegations of non-payments to the electricity facility provider Dynamics Mining. The mining hosting and hardware company failed to pay its electricity bills and hosting fees to Dynamics on time.

A recent Bloomberg report says industrial level Bitcoin miners had borrowed lots of loans on their BTC and equipment collateral. They used these loans to increase their operations and get additional equipment. An Arcane Research shows these miners are in debts of $4B. With Bitcoin price trading close to its 2017 ATH, the miners getting rid of their Bitcoin holdings have increased. They are trying to cover their operational and capital costs with these sales.

Marathon Digital, Core Scientific, Argo Blockchain, Riot Blockchain and Bitfarms have tried to cover their debts, capital expenses and operational costs by selling 1000-3000 BTC.

The troubles the miners are facing have created problems for the ASICs. Their pricing has faced pressure. Major mining gear traders like ASIC Marketplace, Big Sky ASICs, Kaboomracks and Bitmain are selling in the range of $10,000-$18,000, down by 70% from the all-time highs they had.

Arcane Research data shows publicly traded large industrial level miners have sold more BTC than what they had mined in May. It is likely some of them will reduce their business while others will close their operations permanently if they cannot cover their CAPEX and OPEX debts.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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