With burnout in reserve cash, and the growing prices of Bitcoin and other related assets, most mining firms are indeed left with no options but to intensify their efforts to get their hands on more BTC from their farms.
The Bitcoin (BTC) mining difficulty has grown by as much as 10% to record a new high since October. According to data from BTC.com, the Bitcoin mining hashrate climbed to a high of 37.59 Terahashes atop a hashrate of 271.97 EH/s.
The Bitcoin mining difficulty is a measure of how hard it is to mine a block in the BTC network, and it rises when there is an increasing number of miners plugged into the system. The mining difficulty is adjusted every 2 weeks and the next update is slated for 13 days and 6 hours with the projected difficulty billed to be pegged at 37.63 Terahashes.
It may be more difficult to understand the source of the new miners entering into the network per time but at this time, it seems existing dormant miners are becoming more active following the growth in the price of Bitcoin and most Layer one Proof-of-Work (PoW) networks respectively.
While BTC is up by 0.62% to $20,776.21 according to CoinMarketCap’s data, Litecoin (LTC) is up by 4.48% over the past week to be changing hands at $85.53. The price of Bitcoin in particular accounts for its best price range in close to 90 days.
With the revival in the price of L1 PoW coins across the board, a number of miners are returning to profitability as many complained of headwinds surrounding their core businesses. These headwinds focus on the rising costs of energy as an aftermath of the ongoing war between Russia and Ukraine, the slumping price of the mined assets made the entire venture seem like a fruitless effort.
In the wake of the realities they are faced with, many of the miners started selling out their stacked stash, a move that became necessitated when many could not raise cash to finance their operations. The liquidity strain notably pushed a lot of these miners into bankruptcy, with the likes of Core Scientific Inc (OTCMKTS: CORZQ) coming off as one of the most impacted.
Bitcoin Mining Firms Left with No Options
With burnout in reserve cash, and the growing prices of Bitcoin and other related assets, most mining firms are indeed left with no options but to intensify their efforts to get their hands on more BTC from their farms.
Core Scientific was reportedly still mining its own coins even after filing for bankruptcy and the firm has paved the way for a more profitable showing as it unplugged as much as 37,000 mining machines belonging to the bankrupt crypto lender, Celsius Mining for failure to pay up its electric and management costs.
With the freed-up space, Core Scientific could host other miners that are still solvent enough to pay, thus increasing its bottom line across the board. A similar scenario might apply to other embattled miners, as the recent surge back to profitability comes off as a good omen to intensify mining efforts across the board.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
