Bitcoin miner bankruptcies will be less common this time around — Hut8 CEO

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Bitcoin mining bankruptcies won’t be as common post-halving thanks to a reduction in leverage trading and an uptick in mergers and acquisitions, says Hut 8 CEO Asher Genoot.

mining firms filing for bankruptcy in the coming years than there were in 2022, says Hut 8 CEO Asher Gennot.with Bloomberg, Genoot said that the main cause of bankruptcies in 2022 came from firms being overleveraged and unprepared for rising energy costs.

“A lot of companies grew with that and that debt couldn't be serviced in 2022 when Bitcoin prices went down and energy prices went up.”on the NASDAQ — are among several of the Bitcoin miners that filed for bankruptcy during the crypto winter in 2022. Genoot said he expects to see an uptick in mergers and acquisitions activity among smaller-scale Bitcoin miners, something he predicts will contribute to a far lower rate of bankruptcies.for a significant amount of M&A activity or “distress opportunities” to unfold, Genoot explained.is currently slated for April 20 when block 840,000 is reached. The event will reduce miner rewards from 6.25 BTC to 3.125 BTC at current prices.

Source: Digital Coin News (digitalcoinnews.net)

 

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