Q2 was tough for #bitcoinmining companies. 18 of them sold more than 21,000 bitcoins, which was 660% of what they sold in Q1 and ~150% of their #BTC production in Q2.
To make matters worse, the cost of production increased while the general and interest expenses swelled 🧵👇 1/6
To make matters worse, the cost of production increased while the general and interest expenses swelled 🧵👇 1/6
2/6 Analysis of 8 public #bitcoin miners who have released full financial statements so far show that their average cost of production, general and interest expenses per each BTC mined spiked by 22% in Q2 vs. Q1. They represent ~10% of the network hashrate.
3/6 On the lower end was @HiveBlockchain, @RiotBlockchain and @CleanSpark_Inc (~$16k per BTC, everything included).
On the higher end was @SDIGigital (~$45k with big general and interest expenses). Nice photo choice here @DavidPan_1 bloomberg.com/news/articles/…
On the higher end was @SDIGigital (~$45k with big general and interest expenses). Nice photo choice here @DavidPan_1 bloomberg.com/news/articles/…
4/6 Q2 earnings also show signs of debt financing slowing down, at least for the 8 miners, while equity rose again. Q2’s offerings were 4X of Q1 raises. Outstanding loans (current+long-term) remained steady at ~$1.2 billion as of June 30.
5/6 On the bright side, most managed to outgrow the #bitcoin network's increase in Q2, albeit QoQ production growth lagged behind operating hashrate growth.
Why? Uptime. The ones with a smaller gap between production and hashrate growth tend to have a more stable operation.
Why? Uptime. The ones with a smaller gap between production and hashrate growth tend to have a more stable operation.
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