This Bitcoin [BTC] Mine survived the tide, but will you be able to
The state of things for Bitcoin [BTC] miners took a massive decline since the crypto market capitulated. Although there was hope that it would get better, it really hasn’t.
Recently, a top Bitcoin mining company, Stronghold Digital Mining (SDIG) released its report for the second quarter (Q2). The company, via this report, noted that it recorded a debt of $127.9 million, and owns $400,000 in digital assets and $33 million in cash.
The records may not be surprising, especially since the general sentiment in the crypto market remains bearish.
Higher costs, lenders and the way forward
Stronghold also noted that the debt has led to a necessary reduction in the mining fleet. Despite the struggles, the company said it recorded a 597% increase in revenue compared to the same period last year. Stronghold said,
“Second quarter 2022 revenue increased 597% to $29.2 million compared to $4.2 million in the same quarter a year ago.”
According to the report, the increase was due to the increase in energy revenues, supported by high power generation.
Additionally, the Q2 report stated that operating expenses shot nearly 717% from $7.2 million in Q2 2021 to $59 million in 2022. Now, the company said it has developed a way to help it move forward.
The decision was taken to stabilize the company’s financial position. It is a collaboration with NICE with the aim of eliminating the outstanding debt of $67.4 million.
The agreement with the mining lender will also increase Stronghold’s hash rate to 2.5 exahash per second (EH/s).
Moreover, the improved hash rate level will develop the computing power to process more BTC transactions.
There is also an agreement with Whitehawk LLC to expand Stronghold’s current equipment financing to $20 million.
Besides Stronghold, what is the current situation for other Bitcoin mining companies and the BTC market at large?
Failing fortunes perhaps
Data from Blockchain.com revealed that the total hash rate per second was 201.48 million. The current number is down from the value of 209.88 million on August 13.
Source: Blockchain.com
In terms of revenue generated, the number has reduced drastically from the previous 24 to 48 hours. While it was at $22.45 million on August 16, it had reduced to $19.82 million at the time of writing.
Source: Blockchain.com
For miners to become consistently highly profitable again, the BTC price may need to maintain green candles for a while. At press time, the coin was finding it difficult to get back to $25,000 as it had fallen 1.75% to $23,411.
