The slump in cryptocurrency exchange rates over the past few months has saved a very sad story for crypto miners, as the loss was over USD 1 billion.
Based on a Bloomberg report, the three largest Bitcoin mining companies (listed on the capital market) in the United States recorded a total loss of more than USD 1 billion during Q2 2022.
During the second quarter that ended last June 30, the Bitcoin exchange rate fell 60%, from around USD 45 thousand to USD 20 thousand. Even for other cryptocurrencies, the decline was even greater, for example Ethereum, which fell by almost two-thirds.
The three largest Bitcoin mining companies are Core Scientific, Marathon Digital Holdings, and Riot Blockchain. They recorded losses of USD 862 million, USD 192 million and USD 366 million respectively during Q2 2022.
Even these miners to sell Bitcoin with a larger amount than the mining results. The three biggest miners sold 14,600 coins while only making 3,900 coins.
Even last June, Core Scientific had sold 80% of its crypto deposits to cover operational costs and expansion funds. While Bitfarms sold more than half of its coin deposits.
This trend is predicted to continue into the third quarter of this year, as July is the second largest selling cryptocurrency with 6,200 coins sold.
Not only selling off their Bitcoin deposits, the three companies also had to sell crypto mining equipment and take out loans to continue operating. Digital Marathon, for example, is said to have received a loan of USD 100 million and sold its mining equipment to obtain fresh funds of USD 58 million.
This crypto winter will not only affect crypto miners, because the crypto exchange is also affected. Coinbase, the largest cryptocurrency exchange in the US, lost $1.1 billion, and they laid off 1,000 employees last June.