Volatility on the cryptomarket led miners to difficulties with their loans
According to the opinions of the cryptosphere members, increasing the mining cost and declining of the BTC became the reason for the difficulties for companies which gave the equipment as a mortgage to the bank.
Some market participants had to sell token reserves and some had even announced default. The sell out of BTC male the rates to go down and if the credit companies begin to liquidate the mining machines it will put a great pressure on the equipment cost.
For example, Core Scientific has already sold more than 2000 BTC to pay for the operational expenses. 50% of reserves sold Bitfarms to decrease the loan burden. Luka Jankovic, Galaxy Digital Holdings representative, confirmed that many mining companies have difficulties with their loans. He said that the cost of mining machines has reduced and still has no balance because of BTC fallen and unstable prices for the energy.
The founder of Luxor Technologies announced the whole amount of attracted credit funds – $4 billions. In Securitize Capital said that there are probably some companies which still have high level profit but it is not about the whole market at all.
The tangible cryptomarket correction made some miners reject the old tech models and switch off the equipment. In June the consumption of the BTC network declined by 25% from 14.34 GWt to 10.65 GWt.