Bitcoin mining firms are preparing to close the year with $4 billion in debt, amid the effects of the bear market.
The report prepared by Hashrate Index revealed the economic situation of mining companies by the end of 2022.
Bitcoin Mining Companies in Trouble
According to the report, Bitcoin miner Core Scientific was the most affected crypto mining company. The company owes $1.3 billion to creditors. He recently filed for Chapter 11 bankruptcy protection. The company is trying to liquidate some of its inventory and plans to sell 1 gigawatt of equipment.
Marathon Digital is another mining company with significant debt. The company has approximately $851 million in debt. However, since a large part of this is in convertible notes, there is a possibility that creditors will exchange it for shares. The company has a $31.3 million investment in the bankrupt Compute North. However, unlike Core Scientific, it is stated that Marathon is not in danger of bankruptcy.
The Bitcoin mining company took out a loan last year. Due to the bear market effect, Bitcoin mining did not yield as high profits as before. This caused companies to enter a financial crisis.