Fun

Bitcoin miner bankruptcies will be less common this cycle — Hut8 CEO

News Feed - 2024-04-03 02:04:11

Brayden Lindrea3 hours agoBitcoin miner bankruptcies will be less common this cycle — Hut8 CEOA slew of Bitcoin miners filed for bankruptcy in the crypto winter of 2022 but Hut 8 CEO Asher Genoot is adamant that things will be different after the upcoming halving.1127 Total views35 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThere will be far fewer Bitcoin (BTC) mining firms filing for bankruptcy in the coming years than there were in 2022, says Hut 8 CEO Asher Gennot.


Speaking in an April 3 interview with Bloomberg, Genoot said that the main cause of bankruptcies in 2022 came from firms being overleveraged and unprepared for rising energy costs.


“A big area that led to a lot of bankruptcies in the mining sector and distressed assets was because of the leverage of 2021,” said Genoot.“A lot of companies grew with that and that debt couldn"t be serviced in 2022 when Bitcoin prices went down and energy prices went up.”


Compute North, Celsius Mining, and Core Scientific — which has since relisted on the Nasdaq — were among several of the Bitcoin miners that filed for bankruptcy during the crypto winter in 2022.


However, Genoot said that since then, Bitcoin miners have typically relied on less leverage and higher volumes of debt-free capital coming from equity markets to grow their businesses.


He expects to see an uptick in mergers and acquisitions (M&A) activity among smaller-scale Bitcoin miners, something he predicts will contribute to a far lower rate of bankruptcies.


Bitcoin would likely need to retrace to $30,000 or $40,000 for a significant amount of M&A activity or “distress opportunities” to unfold, Genoot explained.


The Bitcoin halving is currently slated for April 20 when block 840,000 is reached. The event will reduce miner rewards from 6.25 BTC ($412,000) to 3.125 BTC ($211,000) at current prices.


Genoot added that investors will flock toward “large-scale operators who have the lowest marginal cost of production,” in the wake of the halving.


The Hut CEO said he took a similar course of action last December when he founded US Bitcoin Corp (USBTC) and combined it with Hut 8 Mining Corp’s operations in an all-stock merger.


The merger is now registered as Hut 8 Corp in Miami, Florida, which boasts over 9,100 Bitcoin, worth $600 million on its balance sheet.


Related:Riot, TeraWulf and CleanSpark best-positioned miners for Bitcoin halving — CoinShares


Bitcoin is currently priced at $66,000, with the halving event now 17 days away.Bitcoin’s change in price over the last 7 days. Source: Cointelegraph Markets Pro


Historically, Bitcoin has set new all-time highs approximately 6-12 months after the halving event, occurring three consecutive times in 2012, 2016 and 2020.


Bitcoin bucked this trend in recent weeks, surpassing its previous all-time high price of $68,990 on March 5, roughly 46 days out from the halving.


Several industry pundits look to the recent launch of spot Bitcoin exchange-traded funds in the United States as the main contributor to Bitcoin’s outsized and atypical price action in recent months.


Magazine:This is your brain on crypto — Substance abuse grows among crypto traders# Bitcoin# Blockchain# Business# Adoption# Bankruptcy# Halving# Bitcoin HalvingAdd reactionRead moreBitfarms announces $240M mining upgrade to triple post-halving hash rateVan Eck heir to launch new USD stablecoin with $12M VC backingCrypto VC Paradigm seeking up to $850M raise for fund: Report

News Feed

Derek Andersen3 hours agoGemini sues Genesis over GBTC shares used as Earn collateral, now worth $1.6BGenesis wants to use the shares’ initial value in claims and is not releasing additional collateral transferred by D
Gareth Jenkinson9 hours agoVisa taps into Solana to widen USDC payment capabilityThe global payments firm has expanded its stablecoin settlement capability to include USDC tokens issued on the Solana blockchain.2929 Tota
US Regulators and the Fed Jointly Issue Crypto Warnings
US Regulators and the Fed Jointly Issue Crypto Warnings The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OC
Apartment Sold for Bitcoin in Portugal After New Regulation Allows Property Deals in Crypto
Apartment Sold for Bitcoin in Portugal After New Regulation Allows Property Deals in Crypto An apartment in Portugal has changed hands, with the buyer paying directly in cryptocurr
Bitcoin Still Bullish, But $200,000 Off The Table And $137,000 In Sight
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Spot Bitcoin ETFs Bleed: 6,700 BTC Exit Amidst Largest Outflow In Months
Este artículo también está disponible en español. Amid a wider readjusting of market expectations for interest rate cuts by the Federal Reserve (Fed) for 2025, investors
Crypto Biz: Bitfarms gets new board after months of power struggles
Ana Paula Pereira3 hours agoCrypto Biz: Bitfarms gets new board after months of power strugglesBitfarms and Riot Platforms settle months of corporate disputes with board review, while BlackRock moves for changes to Bitco
Ethereum Foundation website changes hint at investigation by ‘state authority’
Derek Andersen7 hours agoEthereum Foundation website changes hint at investigation by ‘state authority’The change occurred on Feb. 26, though no further information was provided, according to the foundation’s GitHu
Ezra Reguerra25 minutes agoCybersecurity team claims up to $2.1B in crypto stored in old wallets is at riskThe security firm urges those using wallets generated from 2011 to 2015 to transfer their assets to crypto wallet
Bitcoin and altcoins fail to rally even as US inflation cools down
Marcel Pechman5 hours agoBitcoin and altcoins fail to rally even as US inflation cools downFor years, analysts and traders have said cooling inflation would benefit the crypto market, yet prices are still down. Cointeleg
OneCoin lawyer gets bail pending appeal for conviction and 10-year sentence
Turner Wright2 hours agoOneCoin lawyer gets bail pending appeal for conviction and 10-year sentenceJudge Edgardo Ramos determined that Mark Scott was not “likely to flee or pose a danger to the safety of any other pers
Undeads Metaverse: Security Audit Completed by Certik
Undeads Metaverse: Security Audit Completed by Certik press release PRESS RELEASE.Dubai, UNITED ARAB EMIRATES, January 2023, Undeads Metaverseannounces the completion of its smart c