Crypto Biz: Contagion engulfs Bitcoin miners as bear market continues

cointelegraph.com:

Never underestimate how quickly things can deteriorate in a sector as volatile as crypto, especially in a bear market. Prices can always go lower in the depts of crypto winter and casualties can multiply overnight. 2022 has been a year of never-ending contagion; with everyone focused on Binance, high-profile Bitcoin (BTC) miners were going bust. 

This week, mining company Core Scientific filed for Chapter 11 bankruptcy. Greenridge, another miner, received a $74 million debt restructuring lifeline from New York Digital Investment Group. Bitcoin is the most valuable commodity in a bear market, but miners must keep the lights on.

The news isn’t all negative on the mining front. This week, German miner Northern Data reported that it expects to generate up to $206 million in revenue from its mining operations this year. It also has no financial debt on its books, giving it more flexibility in dealing with market conditions.

This week’s Crypto Biz dissects Core Scientific’s financial troubles, FTX’s clawback warning, Celsius’ pool of potential bidders and Visa’s latest intellectual foray into crypto.

Crypto contagion has spread to the Bitcoin mining industry, with miner Core Scientific reportedly filing for Chapter 11 bankruptcy in Texas. The news came just days after a creditor offered Core Scientific $72 million to help shore up its finances amid the bear market. That deal did not go through. However, Core is said to continue its mining operations and has no plans to liquidate its remaining BTC. The company was forced to offload 9,618 BTC in April to stay operational. Other Bitcoin miners also feel the pinch and are pursuing various means to protect their operations during an extended bear market.

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