Miner Weekly: 5 charts to recap mining in 2022
Bonus: ChatGPT’s poem about the bitcoin mining winter!
We’re almost at the end of 2022. As the mining industry weathers through the winter, here are our selected five charts on the current state of bitcoin mining after a painful year:
Let’s start with hashprice. The growth of bitcoin’s hashrate and the decline of bitcoin’s prices have turbo-charged the plunge of bitcoin’s hashprice to historical lows. There’s probably nothing more painful than that.
Who’s been ramping up the competition in 2022? Public mining firms for sure. The ones below increased the total realized hashrate by 77% from January to November, outgrowing the network’s hashrate over the same period (36%).
Most of the public mining firms are based in North America and their growth in realized hashrate has coincided with the sharp increase in the market share of North American mining pools in 2022.
The declining hashprice, along with the rising energy costs and the spiking inflation, have exacerbated the gross margin of bitcoin mining. Here’s how much profit squeeze everyone is facing at the moment. Q4’22 won’t be much better.
Due to the profit squeeze, many have hit the pause button on their once-ambitious expansion plans. Cash flow from financing and investing activities have cooled down as mining companies try to survive this brutal bear market.
Of course, the bear market hasn’t been easy on anyone, but it’s not a reason to be down this festive season. So to cheer things up, we asked ChatGPT to write us a poem about the hard times in bitcoin mining. To say that the AI was spot-on would be an understatement. Enjoy reading!
The bitcoin mining winter has come,
A chill that cuts to the bone.
Companies once thriving and strong,
Now struggle to turn a profit and move along.The value of bitcoin has fallen,
The costs of electricity have soared.
Competition is fierce, the margins are thin,
And many miners are starting to feel worn.But still they persevere,
With hope in their hearts and fire in their souls.
For they know that the blockchain is strong,
And that the reward for their labor will make them whole.So they brave the cold and the dark,
And continue to mine with all their might.
For they know that their work is important,
And that without them, the network would not be right.Though the future may be uncertain,
And the path ahead may be fraught with peril,
They will keep on mining, come what may,
For the love of bitcoin and the thrill.
Regulation news
Bitcoin Miners’ High Hopes for Latin America Dented by Paraguay - CoinDesk
Finance news
Argo Blockchain tumbles 38% after bankruptcy gaffe - The Block
TeraWulf Raises $10M in New Capital to Repay Some of Its Debts - CoinDesk
B. Riley offers $72 million to mining firm Core Scientific - The Block
Corporate news
Crypto Miner Hut 8 Hires Former IBM Executive as CFO - CoinDesk
Argo Blockchain Says It's Close to Restructuring Without Having to Declare Bankruptcy - CoinDesk
Hardware and Infrastructure
Major Japanese Utility Works With Local Hardware Maker to Capitalize on Excess Power With Crypto Mining - CoinDesk
Low Power Prices for Crypto Miners Come With Strings Attached - Arkansas Business Online
Bitfarms Sells de la Pointe Property for US$3.6 Million in Net Proceeds - Link
