Companies in the crypto-mining sector did not make the best start in the last quarter of 2022. Several disappointing reports have come out in the past few days, each indicating that the industry has not recovered from the effects of the crypto winter.
Cryptocurrency mining issues with Riot Blockchain Inc.
Colorado-based Bitcoin mining company Riot Blockchain recently held a revenue calls for the third quarter of 2022. Needless to say, the company’s investors weren’t happy with the numbers they saw for the third quarter. Revenue on a quarterly basis missed estimates by more than 17%, coming in at $46.3 million, compared to estimates of $56.3 million.
CEO Jason Lu’s response to the Q3 report about Twitter Apparently the company’s shares fell even more. It’s actually down over 19% in the past five days.
Additionally, our strong liquidity position has allowed us to remain focused on implementing our growth plans and achieving new records in hash rate capacity, as we work towards our goal of becoming the world’s leading bitcoin infrastructure platform.
– Jason Les (@JasonLes_) November 7, 2022
Iris Energy reportedly defaulted on a $103 million loan
The unfortunate fate of crypto-mining companies is not limited to the United States alone. Australian bitcoin miner Iris Energy allegedly defaulted on a $103 million loan to purchase equipment.
according to Archive With the US Securities and Exchange Commission, the lender argued that a default notice was issued against Iris Energy. This is because the miner failed to engage in “good faith restructuring discussions” of said debt.
Iris Energy said last week that their bitcoin miners are pumping enough money to cover the extended debt of their purchase. The company’s share price has also fallen by more than 19% over the past five days.
Argo Blockchain Liquidity Problems
London-based Argo Blockchain is said to be facing a serious cash crunch. The bitcoin miner recently took out $28 million in stock, which apparently didn’t manage to keep the company stable.
Argos stock price lost more than 22% of its value over the weekend. At press time, it was trading at £7.54, down 91.6% so far this year.
The reason for the poor performance of these miners is fairly consistent across the board. For the uninitiated, the difficulty of mining bitcoin is quite high. This factor also influenced popular names such as Core Scientific and Compute North.
Rising energy prices are certainly not helping these companies, which are already struggling during the crypto winter. Increased spending on electricity also reduces mining margins for these companies.