Bitcoin [BTC] Miners, despite some optimistic mining cases, are still suffering huge losses. But things were going to go from bad to worse. Here, perhaps one of the largest Bitcoin mining pools by hashing caused the move.
Can’t assemble in anymore
Poolin, one of the largest hashtag Bitcoin mining pools, has frozen withdrawals from PoolinWallet due to liquidity issues. As a result, bitcoin and ether withdrawals have been suspended from the wallet service due to “liquidity issues.” The company stated in a statement on September 5,
“As you know, Poolin Wallet is currently experiencing some liquidity issues due to the recent increase in withdrawal requests. But you can rest assured that all user assets are safe and the company’s net worth is positive.”
PoolinWallet will provide a community update and workable solutions within a week. However, it stated that it continues to “explore strategic options with various parties.”
Just to understand the magnitude of the loss here, consider the following. According to data from BTC.com, the company has been responsible for approximately 10.8% of BTC blocks mined in the past 12 months, ranking as the fourth largest mining pool behind Foundry USA, AntPool and F2Pool.
And to offer some compensation to users as well, Poolin will offer zero fees on Bitcoin and Ethereum mining from September 8 to December 7, along with other offers for users with higher pool balances.
Define the facts
Liquidity issues continued to trouble many crypto companies, including major bitcoin miners, after a change in the market earlier in the year. Even if compensation plans are added, the loss is still significant.
According to known wallet numbers, there were around 18,000 bitcoins in the Poolin wallet. Popular crypto analyst Dylan Leclerc shed some light on Pauline’s holdings on the social media platform.
17.6k BTC is currently in the well-known Poolin # bitcoin Pocket wallet.
One has to wonder how much you currently owe clients? https://t.co/L677tM1lR2 pic.twitter.com/t8qivf2kW5
– Dylan LeClair 🟠 (@DylanLeClair_) 5 September 2022
This development comes at a time when mining is not reaping many benefits (profitability). According to BitInfoCharts, mining profitability has been steadily declining since August 18, when it was at $0.109 per thash/sec (based on a seven-day moving average).
At the moment, profitability has fallen to just $0.082 per THash/s.
All in all, the above crisis only added fuel to the already burning fire. One could witness more mass exodus of bitcoin miners from the network amid such concerns in the coming days.