On the 21st of November 2022, Zack Guzman, the anchor of Coinage media came on Twitter to announce the result of Bitcoin’s current bear market. A defaulting Bitcoin miner and a lot of abandoned equipment.
Just how bad is the crypto collapse?
My landlord friend in Dallas just asked me if I know anything about bitcoin miners:
“This bitcoin mining company defaulted, moved out, and left all their equipment behind.”
200 Antminers 🏃🏽♂️💨 pic.twitter.com/qUNStCYT5F
— Zack Guzmán (@zGuz) November 21, 2022
With the price of BTC struggling at around $16k, the fact that mining BTC is built to get more and more difficult as the days go by, and the problems of inflated electric costs, it seems Bitcoin miners are finding it more and more difficult to get by.
This is why a BTC mining company in Dallas jumped ship, abandoning their equipment in the process. This is in the wake of heavy sell pressures on the BTC price and miners suffering from their holding strategy.
At this moment, miners are holding around 10% of the BTC in supply, and they are losing money on their position as the price refuses to rally. This could trigger a selling frenzy which would lead to even more price drops. Forecasting a gloomy future for the blockchain.
And it seems that the unnamed BTC miner isn’t the only one feeling the heat and jumping ship. Iris Energy, a cryptocurrency data center and mining firm, has defaulted on some of its debts tied to securing mining equipment.
Sometime early this month the company reported two of its wholly-owned special purpose vehicles, gotten for the specific purpose of financing some miners, were close to defaulting due to the miners under those special purpose vehicles, generating less cash than their expected requirements.
And though the claim is that Iris energy is basically intact, it still acknowledges that the development would have a negative material effect on its financial position, cash flows, and future operational abilities.
All these desertions are having a negative impact on the blockchain as there has been a considerable reduction in BTC hash rates.
Who has shut off #bitcoin #btc mining. Last bitcoin block found over 30min ago, this is a 15-25% drop in total bitcoin hashrate across the network. Someone large or several just powered down. pic.twitter.com/8OWLX7cRa0
— Bitsbetrippin (@BitsBeTrippin) November 21, 2022
A Twitter user going by the handle, BitsBeTrippin, came on twitter to announce that a block took over 30 mins to find, which is a drop of hashrate by around 25%.