Bitcoin mining worker stung when the consequences of the drop in prices expand

Bitcoin miner reduces production because falling cryptocurrency prices and increasing energy costs reduce profits and reduce their shares.

miner who use powerful computers to create new Bitcoin units and validate transactions to blockchains were forced to change the course, since falling crypto prices threaten to undermine their high investments in technology.

The Bitcoin Hash rate, a measure of the amount of energy that is spent on the creation of new coins, has fallen 4 percent since the beginning of the week. The decline indicates that digital miners spend less arithmetic resources to solve complex puzzles, for which they are rewarded with newly shaped bitcoins.

The data from Blockchain.com also showed that the total value of the income paid for miners has fallen to the lowest level in almost a year. The stocks of the listed miner marathon Digital and Hut 8 fell by around 40 percent last month, while Argo Blockchain fell by 35 percent.

"At the moment it is no fun to be in the mining business," said Alexander Neumüller, project manager for digital assets at Cambridge Center for Alternative Finance.

The crypto market has come under pressure after months of declining its largest coins, which shrank the value of the market from a maximum of 3.2 trillion dollars in November to just under $ 1 trillion.

Bitcoin has lost more than 50 percent of its value this year to be traded below $ 21,000, with the losses accelerated in the past few weeks after the StableCoin Terra collapsed and the Celsius credit platform prevented its customers from withdrawing money.

"There are many miners in the industry that are exposed to fluctuations in energy prices. As such, they feel pressure from two different directions: High costs paired with lower revenue per genetically generated Bitcoin," said Charlie Schumacher, a spokesman for Marathon Digital, one of the world's largest Bitcoin miner.

Marathon itself spent more than $ 200 million for mining-related investments in the first quarter.

The largest companies usually have fixed energy costs and larger buffers that they can fall back on, but the downturn makes smaller companies susceptible to takeovers and closures. Increasing energy costs in connection with the war in Ukraine have affected the profits of many companies.

Didar Bekbaouov, a Kazakh miner and co -founder of the mining company Xive, said that he adapted "to new prices and reality" and has set unprofitable mining companies when Bitcoin fell below $ 25,000.

companies that have been in the past to banks or capital markets are now more difficult; The stock markets have fallen and the appetite for capital procurement has subsided while interest rates have increased.

This can force others to close their companies or give plans to buy other computers. "In some cases, some people have started to cancel orders due to capital bottlenecks and margin compression," said Schumacher.

"Companies that have been planning carefully for some time will probably survive this time, but many have acted impulsively at the height of the market and could be overloaded and underfunded in the coming months," said Jaime Leverton, Chief Managing Director of Hut 8.

He said Hut8 prepared for a year for a year and set up a chest with 7,078 "Unencumbered Bitcoin", which could use it for acquisitions.

Peter Wall, CEO of the Argo Blockchain noted in Great Britain, expects the “first wave” of takeover transactions within a year.