In the wake of the crypto crash, there are signs that miners need cash, and quickly— and given the current market sentiment they cannot just turn to investors for help. Via WIREDUK
The value of idle or still-to-be-delivered ASICs might soon fall below the price that Marathon—and other mining companies—paid for them near the peak of bitcoin’s bull run, as ASIC prices are generally correlated with that of bitcoin. Charlie Schumacher, a spokesperson for Marathon, says the company paid for most of its newer mining rigs “far below the current market rate”—except for last-generation rigs like the 78,000 it ordered in December.
“Many miners are struggling to pay for their machines because they first invested heavily in infrastructure, with the hope that they could then raise the money to pay for machines that would fill that infrastructure,” Schumacher says. “We don't have to worry about paying to construct infrastructure before we pay for our miners.”
Observers say that miners’ ASIC-buying spree was mostly funded by debt. Doctor, while declining to name any specific company, says that “certain miners have unfunded expenses. They have ordered a whole bunch of machines, they paid a deposit, but they don't necessarily have the funding already secured, or they may be losing some of that funding to pay the second balance to receive the rigs.
In the wake of the crypto crash, there are signs that miners need cash, and quickly— and given the current market sentiment they cannot just turn to investors for help. This month, Riot Blockchain, a major US miner,
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