Why is Bitcoin Mining Suffering

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⭐️Today's selection:

• ⛏️Bitcoin Mining Is Suffering
• 🎁SafePal & Blur.io Airdrop Results
• 💰Venture Monday
• 👌Selected Meme of The Day
• 📰Bite-Sized News

BTC MINING HAVING A BAD TIME

Revenue generated by bitcoin miners fell to a two-year low in November. Looking at the graphs, one thing is obvious. Things are getting rough.

If you combined the fall in the BTC exchange rate together with rising electricity prices... You'd end up with a toxic mix for miners.

The number of transactions falls, fear and uncertainty take over, and everything becomes more expensive. Of course, miners see their revenue FALL.

In other words: mining is increasingly becoming an unprofitable business. So the fact that many such companies have managed to stay afloat at all is nothing short of a miracle.

Here are some facts about how these mining companies are doing:

• Canaan's net income dropped 88% in Q3;
• Cathedra announced payroll cuts;
• Stronghold reported a net loss of ~$50M;
• Bitfarms pays down $27M of debt;

Usually, firms take out loans secured against their mining equipment. But the problem is that this equipment has fallen in price by 85% over the year.

This means that the collateral has become less than the loan amount. Therefore, many companies are at risk of bankruptcy.

Moreover, Alameda Research was a major donor to mining company Genesis Digital.

According to Bloomberg, it has invested about $1.15 billion in the business over the past nine months.

Genesis Digital is one of the top mining companies in the US. However, it is not affiliated with cryptocurrency lender Genesis Capital, which is now in big trouble.

The investment raised by Genesis Digital went towards the purchase of 20,000 mining devices from the firm Canaan. This means... They're about to have a bad time recouping this investment.

In summary: The reasons for the drop in BTC miners' revenues lie in several factors - a sharp increase in mining complexity, high electricity prices and the fall in the BTC exchange rate.

TL;DR: Many signs show that investing in BTC mining has become a really unprofitable thing to do. Many companies can't afford to repay their loans. 🔥

SAFEPAL AIRDROP RESULTS

Remember, not long ago we wrote about SafePal organizing an airdrop. Well, the results are here, the rewards are available and they're waiting to be claimed.

If you participated in this program, be sure to go to your wallet and take a look.

What to expect?

Everyone who completed all tasks is eligible to receive 45 SFP (≈ $21). Which is quite good for such simple actions.

VENTURE MONDAY

Alright. Let's see who where made those gains last week.

Institutional staking platform Kiln raised $17.6M in a Series A funding round. ConsenSys (Metamask devs), Kraken, and many more are among investors.

Klin is a staking-as-a-service platform. It enables investors to stake their Proof-of-Stake protocols via a service that takes care of the technical aspect of the staking process.

It consists of collecting rewards, selecting & monitoring validators, etc. So, such service providers save clients time and money.

Market maker Keyrockraised $72M in a Series B funding round led by Ripple, with participation from Six Fintech Ventures and Middlegame Ventures.

The Brussels-based company, founded in 2017, offers a market-making infrastructure to more than 80 crypto exchanges across the world.

Keyrock provides tools for both sides of a trade.

When talking about digital assets, they provide a market maker infrastructure. It assists the seller to set the price, and the buyer, to buy the asset for it.

Web3 developer platform Fleek raised $25M in a Series A funding round led by Polychain Capital.

Coinbase Ventures, Digital Currency Group, Protocol Labs, Arweave, North Island Ventures, Distributed Global, The LAO and Argonautic Ventures are among investors.

Fleek is an open source, blockchain agnostic, extensible web3 development platform.

SELECTED MEME OF THE DAY

BITE-SIZED NEWS

• Sam Bankman-Fried will Likely Refrain from Testifying Before the US Congress. IT appears that SBF is down for appearances only as a guest speaker.
• Galaxy Digital Wins a Bid to Acquire Self-Custody Platform GK8. Galaxy is always expanding.
• TIMEX Collaborates with Bored Ape Yacht Club to Launch NFT-Themed Watches. It's positive news o'clock.
• Pakistan is Expecting to Launch Central Bank Digital Currency in 2025. India, Brazil… Pakistan. This list will expand.
• Bybit to Lay Off Around 30% of Its Global Workforce. When red charts transform into real life effects.