- Total revenue generated by bitcoin miners in 2022 hit $9.55 billion, according to data on The Block.
- Negative conditions in the crypto market across 2022 compelled several miners to sell off their holdings, while other firms that had less stark grounds closed down.
- Core Scientific will shut down thousands of bitcoin mining rigs tied to Celsius.
Cryptocurrency businesses, miners, traders, and investors suffered a rough and tough 2022 as the prolonged bear market was aggravated by a chain of catastrophes that threatened miners. Miners endured various issues, from defaulted loans, quarterly losses, and surging bitcoin hash rates that recorded new all-time highs (ATH). Combined, these factors affected their profitability, triggering selling pressure.
Bitcoin Miners’ Revenue Dropped In 2022
The situation became worse after crypto prices plunged. Bitcoin (BTC), which had been levitating around $48,000 in 2022, plummeted by over 30% to record a low of $15,590 by the end of the year. Resultantly, on-chain data from The Block reveals that the total revenue generated by bitcoin miners in 2022 hit $9.55 billion.
At the time of writing, Bitcoin is trading at $16,840, up by 1.1% in the last 24 hours. Despite the gain, the king crypto has been on a downward trend like the other crypto tokens. With the fall in crypto prices, miners suffered little income and reduced profits that saw them record a meager $9.55 billion in 2022.
While some argue that $9.55 billion is not small, the recent revenue raise was lower than the $15 billion recorded in 2021. Notably, the revenue raised in 2021 was a 207% year-over-year increase.
The colossal 2021 revenue raised was attributed to the skyrocketing Bitcoin prices, when BTC hit an all-time high of $68,789 around November 10, 2021. Using this ATH as a reference, Bitcoin has dropped by 75.69.
The rough conditions in the crypto market across 2022 compelled several miners to sell off their holdings, while other firms with less stark grounds closed down.
Investors Hope For A Bullish Stance
Nevertheless, since 2022 ended and the market stepped into the New Year 2023, investors are hoping for a bullish stance that a trend reversal may trigger. If their hope pans out, 2023 will be a better year than the last one.
Core Scientific To Shut off Thousands Of Mining Rigs Linked To Celsius Network
Based on recent reports, one of the world’s largest bitcoin miners, Core Scientific, has disclosed plans to close thousands of mining rigs linked to bankrupt Celsius. Based on the report, the move is part of the miner’s bankruptcy proceedings.
The news followed a court filing on Tuesday, December 3, disclosing that Core Scientific will stop hosting more than 37,000 rigs saying that Celsius has not been paying for them in full. On its end, Celsius Network argues that Core Scientific increased its power rate, contrary to what was stipulated in its initial agreement.
Commenting on the matter during the Tuesday hearing, Celsius attorney Chris Koenig of the Kirkland & Ellis law firm said:
“We’ve agreed that they can turn off our rigs effectively today and don’t get to charge us. We don’t continue to pay for it.”
In late December, Core Scientific had petitioned a Texas bankruptcy court to terminate Celsius’s hosting contracts, with the publicly listed miner claiming it could generate monthly revenue of $2 if the agreement ended.
Celsius network filed for Chapter 11 bankruptcy protection in July following a liquidity crisis caused by overleveraged bets and promises made to customers about high yields if they deposited their tokens on the Celsius platform.
Fast forward to December, Core Scientific followed suit when it filed for bankruptcy in the wake of miners suffering a decline in BTC prices and being inflamed by higher energy costs. In a rescue attempt, asset management firm BlackRock said it would pay $17 million to Core Scientific as part of a $75 million loan that the now bankrupt bitcoin miner had secured convertible note holders, according to a filing by the U.S. Securities and Exchange Commission. FactSet data shows that BlackRock is the largest shareholder at Core Scientific firm.
