Bitcoin miners face bankruptcy as debt collectors come knocking – The Average Joe
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    Bitcoin miners face bankruptcy as debt collectors come knocking

    victorlei

    October 27, 2022

    Core Scientific (NASDAQ:CORZ) is one of the world’s largest crypto miners. They may soon also become the world’s largest Bitcoin miner to file for bankruptcy.

    • Core Scientific went public last year at a $4.3B valuation — trading as high as $15.
    • Yesterday’s closing price: $0.20 (down 98%).

    They’ve got 24 Bitcoins (~$500K) and $26M left in the bank. Not much, considering they had a $240M operating loss last quarter.

    Yesterday, they told investors that they won’t make payments on upcoming loans — which means bankruptcy is on the table.

    Bitcoin mining just isn’t as profitable as it used to be. Their entire business is literally using electricity-consuming equipment to mine Bitcoin — then selling that Bitcoin for profit.

    It hurts when the main drivers in their business aren’t going in the right direction:

    • Rising electricity prices: At current electricity prices, Bitcoin miners spend ~50% of their income on energy.
    • Falling Bitcoin ($BTC) price: $BTC has lost over half its value this year.

    This sends a warning to other Bitcoin miners. The longer the crypto winter lasts, the worse it’ll get.

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