Riot Blockchain, Argo and Iris – How Q4 Is Going for Crypto Mining
Companies operating in the crypto mining sector have not had the best start to the last quarter of 2022. Several discouraging reports have come out in recent days, each indicating that the industry has not shaken off the effects of the crypto winter.
Crypto mining problems with Riot Blockchain Inc.
Colorado-based Bitcoin mining company Riot Blockchain recently held its earnings call for Q3 2022. Needless to say, the firm’s investors were not happy with the numbers they saw for Q3. QoQ revenue missed estimates by over 17%, coming in at $46.3 million, compared to estimates of $56.3 million.
CEO Jason Less’s response to the Q3 report re Twitter apparently holding back the company’s stock from the tank further. It has already dropped over 19% in the last five days.
In addition, our strong liquidity position has enabled us to continue to focus on executing our growth plans and achieving new records in hash rate capacity as we work towards our goal of becoming the world’s leading Bitcoin-powered infrastructure platform.
— Jason Les (@JasonLes_) 7 November 2022
Iris Energy has allegedly defaulted on a loan of 103 million dollars
The ill fortune of crypto mining companies is not only limited to the United States. Australian Bitcoin mining company Iris Energy has reportedly defaulted on a $103 million loan given to it for the purchase of equipment.
According to s archiving with the US Securities and Exchange Commission, the lender claimed that the notice of default was issued against Iris Energy. This is because the mining company failed to engage in “good faith restructuring discussions” for said debt.
Iris Energy stated last week that their Bitcoin miners pumped out enough money to cover the debt extended for their purchase. The company’s share price has also fallen by over 19% in the last five days.
Argo Blockchain’s liquidity problems
London-based Argo Blockchain is reportedly facing a serious cash crunch. The Bitcoin mining company recently had an equity injection of $28 million, which clearly has not been able to keep the company stable.
Argos’ share price lost over 22% of its value over the weekend. At press time it was trading at £7.54, down 91.6% year to date.
The reason behind the poor performance of these mining companies is fairly consistent across the board. First, the difficulty level of Bitcoin mining is extremely high. This factor has also affected popular names such as Core Scientific and Compute North.
Rising energy prices are definitely not helping these firms, which are already struggling in the crypto winter. Rising electricity costs also reduce mining margins for these companies.
