Are Texas miners bankrupt? More and more companies are facing financial difficulties
The crisis in the crypto market has not bypassed the miners from Texas. Bloomberg published an article about the difficulties faced by the cryptocurrency mining industry. Based on this information, many companies are one step away from bankruptcy.
According to Mason Jupp, executive director of Blockware, there are a huge number of unused assets located throughout the state.
Containers, transformers, mobile data centers, all of them unused. And a significant amount of money was invested in creating the infrastructure: at least $300,000 per 1 mW.
Iris Energy was one of the companies that faced great difficulties. The closure of two facilities and $108 million in debt forced the company to think about how much capacity to build in Childress beyond the original 20 MW.
Compute North, which was building the 600-mW facility, also filed for bankruptcy. Argo Blockchain abandoned plans to launch an 800 mW farm in Dickens. One of the largest miners, Core Scientific, also warned of possible bankruptcy.
The high cost of electricity, coupled with the fall in the bitcoin exchange rate, has played a significant role in the deteriorating financial condition of the mining companies. Those who expanded their capacity using credit funds are now unable to meet their obligations and are returning their hardware.