- The firm attributed this to the depreciation of BTC
- The company only stayed afloat because of the agreement with Galaxy Digital
- In Q1 2023 a miner was mining an average of 5.5 BTC per day
Last year was difficult for exchanges, lenders and miners alike.
Some of the “farmers” were forced out of the market by external pressures, including the depreciation of BTC and the forced liquidation of loans backed by hardware..
Miner avoided bankruptcy solely because of the agreement with Galaxy Digital. Recall that the company sold its Helios facility in Texas for $65 million.
But even with that, the company’s financial results last year were disappointing.. Net loss in 2022 was $240.2 million. For comparison, the miner finished the year 2021 with a net profit of $38 million.
The company attributed this to the depreciation of the BTC portfolio as a result of the asset’s fall.. In 2022 the price of bitcoin collapsed by 60%.
As for other indicators, the situation is slightly better. Miner increased its total hashrate by 55% in a year, to 2.5 EH/s.
The company also plans to commission 2,870 BlockMiner units on Intel Blockscale ASIC chips in Q3 2023.
The company has mined 5% more BTC for the year. But the mining margin fell from 84% to 54%.. This, along with the depreciation of the asset, has impacted Miner’s earnings.
The company averaged 5.5 BTC per day in Q1 2023. The company is slowly ramping up production capacity and expects the financial situation to improve by the end of this year.