Bitcoin miners saw massive plummets since the cryptocurrency market capitulation. Though participants hope for the best, nothing has improved. A leading BTC mining firm, Stronghold Digital Mining (SDIG),
published its Q2 report recently. The results showed the company has $127.9M in debts, $400,000 in virtual assets, and $33M in cash. However, the records may not be astonishing as the broad cryptocurrency market sentiment remains bearish.
Lenders, Higher Costs, and What Next
Also, Stronghold stated the debt has translated to an essential mining fleet reduction. Despite the hurdle, the mining company revealed a 597% revenue surge compared to a similar period in 2021. It stated that Q2 2022 saw revenues increasing by 597% to $29.2M, higher than Q2 2021’s $4.2 million.
The report highlighted that energy revenue increase contributed to the rise, receiving support from high power generation. Moreover, the second-quarter report confirmed that operating expenses exploded by approximately 717% from Q2 2021’s $7.2M to $59M in 2022. Meanwhile, the firm highlighted its strategies to move forward.
The decision remains crucial to stabilize the firm’s financial stance. It has partnered with NYDIG, aiming to eliminate its $67.4 million outstanding debt. Moreover, collaborating with this miner lender will propel Stronghold’s hashrate to 2.5 EH/s.
The enhanced hash rate will ensure the computational power to process increased Bitcoin transactions. Also, the BTC miner partnered with Whitehawk LLC, targeting to expand its present equipment financing to $20 million. Meanwhile, what about other BTC mining firms and the overall market besides Stronghold?
Diminishing Fortunes Perhaps
Blockchain.com data showed overall hash rate per second stood at 201.48 million. That reflects a decline from August 13’s 209.88 million. As for generated revenue, the figure has declined massively from the past one to two days. The number hovered at $22.45 million on August 16 before plunging to $19.82M during this publication.
Bitcoin should print green candlesticks for some time before miners enjoy consistent & high profits again. While writing this blog, the bellwether crypto found it challenging to spike beyond $25K. That triggered downsides to $22,836 during this publication. The leading crypto loses upside momentum following the latest remarkable surge.