Public Bitcoin Miners Are Taking on $4 Billion in Collective Debt

© Reuters.

Recent bankruptcy filings of (BTC) miner Core Science defies $72 million bailout offer from creditors raises questions about the overall health of the bitcoin mining community amid a protracted bear market. As it turned out, bitcoin miners publicly owed more than $4 billion in debt and required immediate restructuring to get out of unsustainably high levels of debt.

The Bitcoin mining community took large loans during the 2021 bull market, negatively impacting their profitability in a subsequent bear market. bitcoin mining data analysis According to the Hashrate Index, only the top 10 Bitcoin mining debtors owe more than $2.6 billion in total debt.

Public Bitcoin miners have the highest debt. Source: Hashrate Index
Public Bitcoin miners have the highest debt-to-equity ratios. Source: Hashrate Index