Mining companies are having problems paying back loans

  • 15:49 Dec 01, 2022
  • 358
Mining companies are having problems paying back loans

As a result, debtors have to give back creditors the devices that were collateral in obtaining funds.

According to Bloomberg, at a time when the profitability of cryptocurrency mining reached 90%, miners have attracted $4 billion to expand their capacity. All the negative events that occurred in the market recently increased the tough situation for those who financed the miners. We're talking about companies like Foundry, Galaxy Digital, NYDIG, etc. In particular, Core Scientific, on the verge of bankruptcy, owes NYDIG $39 million. Stronghold Digital also failed to fulfill obligations and returned 26.2 units of equipment.

Private mining companies own about 75% of BTC's computing power. A significant portion of industrial miners has turned to loans secured by equipment, which now, after falling prices, may not be able to provide payments.

Lenders also find themselves in a difficult situation. They own the devices, which can be sold at a high discount. Or they will have to consider options of independent BTC-mining.

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