Bitcoin mining companies are struggling with huge debts after taking out loans in 2021. Some companies are already bankrupt, while others are trying to renegotiate loan agreements. Public Bitcoin mining companies have struggled under the weight of a year-long bear market and are expected to end 2022 with a total debt profile of more than $4 billion, according to a report from Hashrate Index.
According to the report, Bitcoin miner Core Scientific is the strongest. The company owes $1.3 billion to creditors and has filed for the 11th round of financing. The struggling miner is trying to liquidate some of its inventory and plans to sell up to 1 gigawatt of equipment. Digital Marathon is another Bitcoin miner with great potential.
The company owes about $851 million, but most of it is in convertible notes, which means that holders can exchange it for shares of the company. The company also invested $31.3 million in Compute North, which is currently paying dividends. And, unlike Bitcoin mining company Core Scientific, Marathon won’t put money at risk. Many Bitcoin miners have taken out loans over the past year.
Some have been drawn against bitcoin and crypto holdings and are difficult to maintain, and the price of bitcoin and crypto has fallen significantly since the beginning of the year. Some are now facing the task of renegotiating their loan agreements to avoid another financial crisis.
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