{"id":285588,"date":"2023-01-02T20:04:44","date_gmt":"2023-01-02T20:04:44","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=285588"},"modified":"2023-01-02T20:04:44","modified_gmt":"2023-01-02T20:04:44","slug":"bitcoin-miner-revenue-down-37-5-in-2022-yoy","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/bitcoin-miner-revenue-down-37-5-in-2022-yoy\/","title":{"rendered":"Bitcoin miner revenue down 37.5% in 2022 YoY"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Bitcoin mining revenue was down to $9.55 billion in 2022 from <a href=\"https:\/\/www.tbstat.com\/wp\/uploads\/2021\/12\/The-Block-Research-2022-Digital-Asset-Outlook.v2.pdf\">$15.3 billion<\/a> in 2021 &#8211; a 37.5% decline.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since the peak of a massive rally in 2021, cryptocurrencies have lost more than $2 trillion in market cap to reach below <a href=\"https:\/\/cryptoslate.com\/major-sell-off-sees-total-crypto-market-cap-dip-to-900b\/\">$900 billion<\/a>. There has been <\/span>more than a <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">70% drop in Bitcoin<\/a>, the world's largest digital coin since it reached an all-time high of nearly $69,000 in November. In addition, several high-profile company and project failures have sent shock waves in the past year.<\/p>\n<p><span style=\"font-weight: 400;\">This all began in May with the <a href=\"https:\/\/cryptoslate.com\/how-the-ust-crash-changed-the-stablecoin-landscape\/\">collapse of terraUSD<\/a>, which brought down other firms like Three Arrows Capital, a crypto-oriented hedge fund. Then, in November,<\/span><span style=\"font-weight: 400;\">\u00a0FTX, one of the world's largest cryptocurrency exchanges, <a href=\"https:\/\/cryptoslate.com\/chainalysis-data-reveals-ftx-collapse-caused-9b-in-realized-losses\/\">collapsed<\/a>, affecting the industry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, <a href=\"https:\/\/cryptoslate.com\/destroying-demand-the-fed-will-keep-hiking-interest-rates-longer-than-you-can-stay-solvent\/\">rising interest rates<\/a> have put pressure on risk assets, such as stocks and crypto, along with crypto-specific failures.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As investors became wary of volatile assets, deteriorating market conditions also affected miners. Aside from market conditions, miners also faced high electricity costs and <a href=\"https:\/\/cryptoslate.com\/bitcoin-mining-difficulty-to-end-year-rising-by-3\/\">record mining difficulty<\/a>. In 2022, mining difficulty reached a record high due to an increase in hash rate, which left some miners struggling for profitability.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Due to this, the miner's daily revenue has fallen sharply to $16.173 million &#8211; down from $63.548 million on Nov. 10, 2021.<\/span><\/p>\n<figure id=\"attachment_285611\" aria-describedby=\"caption-attachment-285611\" style=\"width: 896px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-285611 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/min.png\" alt=\"Change in daily miner's revenue in 2022 (Source: Blockchain.com)\" width=\"896\" height=\"526\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/min.png 896w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/min-300x176.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/min-768x451.png 768w\" sizes=\"(max-width: 896px) 100vw, 896px\" \/><figcaption id=\"caption-attachment-285611\" class=\"wp-caption-text\">Change in daily miner's revenue in 2022 (Source: Blockchain.com)<\/figcaption><\/figure>\n<h2><span style=\"font-weight: 400;\">Top Mining firms suffered in 2022<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">According to Hashrate Index, the debt-to-equity ratio more than tripled for many mining firms, indicating greater financial leverage. <\/span><\/p>\n<figure id=\"attachment_285612\" aria-describedby=\"caption-attachment-285612\" style=\"width: 677px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-285612 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/hashrate-index.png\" alt=\"Public miners\" width=\"677\" height=\"426\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/hashrate-index.png 677w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/hashrate-index-300x189.png 300w\" sizes=\"(max-width: 677px) 100vw, 677px\" \/><figcaption id=\"caption-attachment-285612\" class=\"wp-caption-text\">Debt to equity ratio<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Core Scientific has the highest debt-to-equity ratio at 26.7, followed by Greenidge and Stronghold at 18 and 11.1, respectively. Argo also has a high debt-to-equity ratio of 8.7.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to Core Scientific's <a href=\"https:\/\/investors.corescientific.com\/investors\/financials\/quarterly-results\/default.aspx\">balance sheet<\/a>, as of Sept. 30, the company owed the most, with $1.3 billion in liabilities. The second-largest debtor is Marathon, with $851 million in liabilities.\u00a0<\/span><\/p>\n<figure id=\"attachment_285613\" aria-describedby=\"caption-attachment-285613\" style=\"width: 676px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-285613 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/lia.png\" alt=\"public miners liabilities\" width=\"676\" height=\"422\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/lia.png 676w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/lia-300x187.png 300w\" sizes=\"(max-width: 676px) 100vw, 676px\" \/><figcaption id=\"caption-attachment-285613\" class=\"wp-caption-text\">Liabilities<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">As a result, miners with high debt-to-equity ratios, such as Core Scientific (CORZ), <a href=\"https:\/\/cryptoslate.com\/bitcoin-miner-core-scientific-files-for-bankruptcy-has-over-1b-in-liabilities\/\">filed for bankruptcy<\/a>. Whereas Greenidge Generation (GREE) and Stronghold Digital Mining restructured their debt obligations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Due to the bearish sentiment in 2022, miners' profitability suffered. Bitcoin's profitability is measured in dollars per terahash, or TH, per second. During its peak in 2017, bitcoin mining <a href=\"https:\/\/www.forbes.com\/advisor\/investing\/cryptocurrency\/is-bitcoin-mining-profitable\/\">generated<\/a> $3.39\/TH per second, but it dropped to $0.104\/TH in 2022.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Prominent public mining companies suffered considerable losses in 2022 that rose over 90% on average.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin mining revenue was down to $9.55 billion in 2022 from $15.3 billion in 2021 &#8211; a 37.5% decline. Since the peak of a massive rally in 2021, cryptocurrencies have lost more than $2 trillion in market cap to reach below $900 billion. There has been more than a 70% drop in Bitcoin, the world&#8217;s [&hellip;]<\/p>\n","protected":false},"author":1393,"featured_media":280157,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77873,2376],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bitcoin miner revenue down 37.5% in 2022 YoY<\/title>\n<meta name=\"description\" content=\"Along with poor market conditions, miners also suffered from high electricity costs and record mining difficulty.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/bitcoin-miner-revenue-down-37-5-in-2022-yoy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bitcoin miner revenue down 37.5% in 2022 YoY\" \/>\n<meta property=\"og:description\" content=\"Along with poor market conditions, miners also suffered from high electricity costs and record mining difficulty.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/bitcoin-miner-revenue-down-37-5-in-2022-yoy\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-02T20:04:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/12\/bitcoin-miner.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Soumen Datta\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Soumen Datta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/bitcoin-miner-revenue-down-37-5-in-2022-yoy\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/bitcoin-miner-revenue-down-37-5-in-2022-yoy\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/soumen-datta\/#person\",\"name\":\"Soumen Datta\",\"url\":\"https:\/\/cryptoslate.com\/author\/soumen-datta\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/soumen-datta\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/soumen-datta\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/10\/cs-soumen.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/10\/cs-soumen.jpg\",\"caption\":\"Soumen Datta\"},\"jobTitle\":\"Journalist\",\"description\":\"Soumen is a dedicated researcher and writer in the field of cryptocurrencies, DeFi, NFTs, and GameFi projects. 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