Galaxy Digital: challenging times for miners will continue in 2023

Galaxy Digital has presented a report and outlined what it believes is in store for miners soon.

Due to significant changes in the hosting landscape, fixed-rate contracts are likely to stop working. In addition, bitcoin hash rates are expected to increase by 23% by the end of the year.

The mining industry is now addressing the consequences of the misallocation of resources that took place in the bull trend of 2021. The last year has forced miners into survival mode, but there is reason to believe that this is all just the beginning of difficult situations that will arise in the future.

It was also noted that amidst the plethora of bankruptcies of large companies, it can be concluded that those who remained were more careful about financial strategies and cautious in capacity expansions.

Miners need to form an asset management strategy that meets their funding needs.

Over the past year, companies with more than 1 GW of hosting capacity have been among the bankrupt. It will provoke a shift away from fixed-rate operations.

More often we see hosting providers offering cooperation on “capacity+spread” terms, and developing various preferential programs for clients.