Bitcoin [BTC] mining rig Hive Blockchain is putting up a valiant fight amidst the bearish market sentiment and spiking energy prices. According to a production report published on 7th Nov., the Toronto-based miner holds a balance of 3,311 Bitcoin as of November 5, 2022.
Not only that, Hive has been able to maintain debt-free servicing payments and a strong balance sheet, with approximately $70 million USD of BTC, with no expensive borrowing against equipment like ASICs or GPU chips, or digital assets.
Frank Holmes, Executive Chairman of HIVE stated, “We are very happy to be producing over 300 Bitcoin per month, which is about 1% of the global network, even when network difficulty is at an all-time high. We have sold all our Ethereum holdings. In October we produced an average of 9.9 BTC per day.”
In terms of prices, BTC held close to $20,000 over the previous week, but some miners are struggling as a result of rising energy costs and historically low hash prices, which are reducing profits.
But what is more concerning is that the dominoes for bitcoin miners have just started to fall, despite the fact that bitcoin’s value has been in the downtrend for some time and has decreased by roughly 56% year to date.
Tough Days Ahead For Bitcoin Miners
“There are a lot of different issues in motion. Obviously, the global recession is looming, on top of inflation and rising prices of electricity,” Christopher Perceptions, founder of PerceptForm and CEO of NoCodeClarity, said in an interview.
“Miners are struggling for a multitude of reasons right now,” Nick Hansen, CEO of crypto-mining firm Luxor, stated. “We’re seeing the historically low hash price, which means that miner revenues are at all-time lows.”
Hash price is a metric used to estimate the market value of each hashing power unit. It is determined by changes in the difficulty of mining bitcoin, which is currently high, as well as the cost of the cryptocurrency.
In other news, crypto markets continue to remain volatile. Per Coinglass, in the past 24 hours, 152,000 Bitcoin worth a staggering $3.15 billion were transferred to exchanges.
Typically cryptocurrencies leaving wallets for exchanges is not a good indicator as there are chances of dumping spree into the market.