{"id":67789,"date":"2022-09-28T11:36:10","date_gmt":"2022-09-28T08:36:10","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=67789"},"modified":"2025-09-07T08:31:57","modified_gmt":"2025-09-07T05:31:57","slug":"study-finds-publicly-listed-mining-companies-posted-losses-amid-crypto-winter","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/study-finds-publicly-listed-mining-companies-posted-losses-amid-crypto-winter\/","title":{"rendered":"Study finds publicly listed mining companies posted losses amid crypto winter"},"content":{"rendered":"<p>The vast majority of publicly listed mining companies reported unallocated losses on their balance sheets, despite a buoyant 2021. Arcane Research analysts found this.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">How are things going in the crypto market?<\/p>\n<p>? An uplifting Tuesday morning for <a href=\\\"https:\/\/twitter.com\/hashtag\/BTC?src=hash&#038;ref_src=twsrc%5Etfw\\\">#BTC<\/a><br \/>?The fearfulness among crypto market participants continues<br \/>?The crypto market stands strong amid macro volatility<\/p>\n<p>Read more in our latest market update:<a href=\\\"https:\/\/t.co\/vA4z2CAwUb\\\">https:\/\/t.co\/vA4z2CAwUb<\/a><\/p>\n<p>\u2014 Arcane Research (@ArcaneResearch) <a href=\\\"https:\/\/twitter.com\/ArcaneResearch\/status\/1574763851018653697?ref_src=twsrc%5Etfw\\\">September 27, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\\n<\/p>\n<p>They examined the financial statements of Argo Blockchain, Bitfarms, CleanSpark, Stronghold, Hut 8 Mining, Marathon Digital Holdings, Riot Blockchain, and Core Scientific.<\/p>\n<p>They found that only the first had unallocated profit of $26 million, while the others on the list carried unallocated losses ranging from $137 million to $1.3 billion.<\/p>\n<div class=\\\"wp-block-image\\\">\n<figure class=\\\"aligncenter size-full\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"569\\\" height=\\\"516\\\" src=\\\"https:\/\/forklog.com\/wp-content\/uploads\/izobrazhenie_2022-09-28_113451922.png\\\" alt=\\\"Research: Public mining companies posted losses due to crypto winter\\\" class=\\\"wp-image-186071\\\" srcset=\\\"https:\/\/forklog.com\/wp-content\/uploads\/izobrazhenie_2022-09-28_113451922.png 569w, https:\/\/forklog.com\/wp-content\/uploads\/izobrazhenie_2022-09-28_113451922-300x272.png 300w\\\" sizes=\\\"auto, (max-width: 569px) 100vw, 569px\\\" \/><figcaption>Data: Arcane Research.<\/figcaption><\/figure>\n<\/div>\n<p>\\n<\/p>\n<p>An undistributed loss of $1.3 billion at Core Scientific stems from a negative write-down of goodwill from <a href=\"https:\/\/forklog.com\/en\/news\/core-scientific-to-go-public-via-spac-merger\">the acquisition of BlockCap in July 2021<\/a>, amounting to $788 million. The identifiable net assets of the latter at the time of the deal stood at $142 million, while the purchase price was $1.2 billion.<\/p>\n<p>In other words, the majority on the list had been losing money for years. Experts attributed the situation to high administrative costs, unsuccessful bets on the first cryptocurrency and over-expansion during the 2021 bull market.<\/p>\n<p>The companies failed to capitalise on favourable conditions last year, when the mining margin for Bitcoin peaked at 1,260%. It has since fallen to 85%, but it must cover operating costs, including depreciation of equipment and salaries.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p><em>\\&#8221;This should serve as a warning that costs at some of these companies could get out of control. Adopting proper risk-management strategies and cutting administrative expenses should be given priority,\\&#8221;<\/em> the experts said.<\/p>\n<\/blockquote>\n<p>\\n<\/p>\n<p>Earlier, in September, the mining company and cloud-mining infrastructure provider Compute North <a href=\"https:\/\/forklog.com\/en\/news\/compute-north-files-for-bankruptcy\">filed for bankruptcy<\/a>. <\/p>\n<p>\\n<\/p>\n<p>In April, Arcane Research analysts noted that the fall in Bitcoin price and the rise in hashrate <a href=\"https:\/\/forklog.com\/en\/news\/experts-forecast-a-decline-in-mining-profitability\">will put pressure on the profitability of mining cryptocurrencies<\/a>.<\/p>\n<p>\\n<\/p>\n<p>In June, experts stated that mining profitability <a href=\"https:\/\/forklog.com\/en\/news\/arcane-research-bitcoin-mining-profitability-falls-to-2020-levels\">had fallen to 2020 levels<\/a>.<\/p>\n<p>\\n<\/p>\n<p>Some companies were forced to cut Bitcoin reserves. In July<a href=\"https:\/\/forklog.com\/en\/news\/in-july-public-miners-continued-to-liquidate-bitcoin-reserves\"> the trend continued<\/a>. The heatwave in Texas exacerbated the situation, driving peak electricity demand and price spikes, forcing companies to temporarily<a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-miners-pause-operations-in-texas\"> halt operations<\/a>. <\/p>\n<p>\\n<\/p>\n<p>In September, Arcane Research concluded that, despite unfavourable market conditions, publicly listed companies in the industry <a href=\"https:\/\/forklog.com\/en\/news\/arcane-research-notes-resilient-finances-among-public-miners\">remain financially resilient<\/a>.<\/p>\n<p>\\n<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news on our <a href=\\\"\/\/telegram.me\/forklog\u201d\\\" target=\\\"\u201c_blank\u201d\\\" rel=\\\"\u201cnofollow\u201d noopener\\\">Telegram<\/a> \u2014 Bitcoin news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The vast majority of publicly listed mining companies reported unallocated losses on their balance sheets, despite a buoyant 2021. Arcane Research analysts found this.<\/p>\n","protected":false},"author":1,"featured_media":67790,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1874,1137,167],"class_list":["post-67789","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-arcane-research","tag-cryptocurrency-mining","tag-research"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/67789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=67789"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/67789\/revisions"}],"predecessor-version":[{"id":67791,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/67789\/revisions\/67791"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/67790"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=67789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=67789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=67789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}