While Bitcoin Seems Stable, Some Crypto Miners Are Still In Trouble

Nov 01, 2022

While_Bitcoin_Seems_Stable

Bitcoin values are a tenth of what they were a year ago, but the prognosis has just improved. The same cannot be true for the miners who power the world's largest cryptocurrency, as seen by the stock market.

Core Scientific stock has fallen 78% since Thursday, while Argo Blockchain shares fell 55% on Monday. These are two of the largest publicly traded crypto miners, and they are suffering financial difficulties. Looking at Bitcoin pricing, you'd never know.

Given the link between cryptos and other risk-sensitive assets that has intensified under 2022's difficult macroeconomic climate, Bitcoin has sunk lower and lower this year due largely to stock market falls.

But things appear to be improving. Bitcoin prices remained between $19,000 and $20,000 for much of September and October, stabilizing while the stock market was significantly more turbulent. Last week's gain sent Bitcoin far above $20,000, which has since stabilized.

Analysts are cautiously predicting that the bottom of Bitcoin's bear market has been reached. After persistently skewing bearish since summertime, sentiment in the Bitcoin options market has just reverted to neutral. For the second week in a row, money is streaming back into Bitcoin funds and out of those betting against the currency, according to crypto asset management CoinShares.

Nonetheless, Bitcoin miners are in serious danger, deteriorating the situation. Understanding the business model helps you understand why.

Bitcoin miners are important to the "proof of work" procedure that keeps the cryptocurrency running. They employ computers — frequently warehouses of them — to solve complicated problems to assist network security and transaction processing, the motivation being payment in Bitcoin. This procedure demands massive quantities of energy. How tough these riddles are, and therefore how much energy must be used, is primarily influenced by the number of miners involved in the process.

A combination of sky-high energy prices, growing competition, and months of low Bitcoin prices is playing havoc on miners' balance sheets. Shares of miners, which have historically moved in lockstep with fluctuations in Bitcoin's price, appear untethered. Many people are leaving.

According to a filing on Thursday, financial concerns forced Core Scientific's board of directors to vote against completing payments due in late October and early November, despite the risk of being sued. The company was considering alternatives such as obtaining extra financing, reorganizing, or possibly filing for bankruptcy.

The scenario appears to be similar to that of Argo Blockchain, which announced in early October that it had achieved an agreement to change payment schedules in order to free up funds. Argo also announced that it would sell mining equipment to obtain funds and that it had reached an agreement with a strategic investor to finance an additional $27 million. The corporation announced on Monday that it no longer expects the arrangement to be completed and will continue seeking other funding options.

D.A. Davidson analyst Christopher Brendler stated in a note on Oct. 21 that "although we still believe in Bitcoin and anticipate considerably more potential in miners, it's time to be even more selective since the agony of a protracted bear market has stressed everyone but the best positioned."

While Brendler lowered the whole sector, he gave Buy ratings to Riot Blockchain and Marathon Digital. Only Core Scientific and Argo Blockchain were demoted to Neutral.

It's an indication that, while Wall Street has recognized the issues with crypto miners, ratings may not completely reflect the seriousness of the situation.

Subscribe Our Newsletter

When_To_Purchase_Micron

Milena

When to Purchase Micron Stock Despite Bearish News

Micron stock is falling as a result of the company's gloomy report. However, there are a few safe strategies to be aware of.

Companies
Stock Market Predictions 2024: The Fed Expected for Interest Rate Cuts

Alexander

Stock Market Predictions 2024: The Fed Expected to Make Significant Interest Rate Cuts in 2024 — What Does It Mean for Stocks?

The Wall Street anticipates the Fed to make six interest rate cuts in 2024, potentially providing relief to the economy and driving gains in the stock market and making new stock market predictions 2024.

Stock Market Forecast
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Oliver

How to Use MT5 to Trade Cryptocurrency
Modern financial market research methods involve investing in financial assets (in particular, forming a securities/assets portfolio), which is carried out based on thorough analysis. At the moment, it's possible to find many valuable tools for traders, which in one way or another, facilitate the process of trading or preparing a setting for this trade.

discover
Cash Account vs Margin Account in 2024 - the Difference

Alexander

Cash Account vs Margin Account in 2024: What’s the Difference?

In this guide, we will walk you through the key differences of cash a account vs margin account, helping you determine which option may be best for your needs.

Investing
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi

    Hazem

    Max Funded IUL Explained: Is It a Legitimate Financial Strategy?

    Understanding Max Funded IUL

    Alexander

    Tax Refund Timeline: When Will You Get Your Tax Return?

    how long does it take for tax refund

    Constantine

    Crypto Liquidity — What is it, and How to Measure It?

    What is Crypto Liquidity and How to Measure It?

    Constantine

    AI in Finance: A Game-Changing Trend Shaping the Industry

    AI in Finance

    Hazem

    5 Ways to Make Money with ChatGPT and Build Your Wealth

    Make Money with ChatGPT

    Constantine

    Top AI Companies to Invest in April 2025

    Top AI Companies to Invest in March 2025

    DeepSeek vs ChatGPT: Which AI Technology is Better For You?

    DeepSeek vs ChatGPT: Feature-by-Feature AI Tool Comparison

    Constantine

    Top Solana Meme Coins in 2025: Best Presales and Where to Buy

    Solana Meme Coins 2025

    Alexander

    How Renewable Energy Stocks Can Supercharge Your Portfolio

    How Renewable Energy Stocks Supercharge Your Portfolio

    SEC Crypto Regulations: What Financial Advisors Need to Know

    SEC Crypto Regulations: Insights for Financial Advisors
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.