Has cryptozyme hit mining companies?

  • Ultramining.com
  • 13:59 Sep 29, 2022
  • 350
Has cryptozyme hit mining companies?

Public virtual coin mining organizations have shown their balance sheet where significant losses of funds are noticeable. Despite the fact that 2021 was, with more, a good year.

Experts from Arcane Research  came to these conclusions in their market review. It was posted on the official AR Twitter account a couple of days ago.

The reports were based on some popular mining companies. Such as Blockchain, Bitfarms, CleanSpark, Stronghold and others.

According to Arcane Research, some have suffered unallocated losses of funds. These losses range in size from $137 million to 1.3 billion units of the same currency.

Unallocated losses are not a one-time action. The amount of money lost that is mentioned in this context has accumulated over the lifetime of a particular company. Losses can be attributed to many factors. They include:

  • Illiterate management;
  • waste of administrative resources;
  • failed investments, and so on.

Past trends

Back in April of this year, AR specialists noted that the low value of BTC and the increase in hash rate had a negative impact on mining.

Already in June, the profitability of virtual coin mining fell to the level of two years ago. Hence the reduction of bitcoin reserves.

Positive outlook

Despite the deplorable situation in which some mining companies find themselves, Arcane Research observers are optimistic. They note that despite all the negative trends, miners remain in a relatively stable financial position.

Probably, if the situation does not worsen, the collapse of the crypto market will not be expected.

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