The mining industry frozen by the crypto winter

Posted Nov 8, 2022, 12:30 PMUpdated on Nov. 8, 2022, 2:30 p.m.

Rain of bad news for cryptocurrency miners. Signs of trouble are mounting for companies tasked with securing transactions on blockchains like bitcoin. Already weakened by a crypto market that has lost more than 50% of its value since the start of the year and impacted by soaring energy prices, several bitcoin miners are on the brink.

The first red flag was waved in September by the American Compute North. This major mining infrastructure provider has filed for bankruptcy after revealing it could not settle a $500 million debt to its creditors. Another Nasdaq-listed industry heavyweight, Core Scientific, also filed for bankruptcy with the SEC in late October. The management team fears having to go out of business by the end of the year and is seeking to raise funds when its debt reached 800 million dollars at the end of June.

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