A recent avalanche of news reports about major cryptocurrency
players filing for bankruptcy could take a toll on the industry, which
is already battling price uncertainties. These stories could indicate
that the rout in cryptocurrency prices may be weighing heavily on
Bankruptcies In The Industry
The sector has recently
received shocking news
(CRYPTO: BTC) miner
Core Scientific Inc.
(NASDAQ: CORZ) warning that it won’t be able to pay its debt,
sending the company’s shares plummeting by 76%.
Securities and Exchange Commission (SEC) filing
Scientific will not be able to make debt payments due in October and
November. The company said it is exploring alternatives to its capital
structure and is working with financial and legal advisers, but noted
that it might have to file for bankruptcy.
The industry was hit with another such news
report when Compute North Holdings Inc., one of the largest operators
of crypto-mining data centers, announced on Sept. 22 that it had
and CEO Dave Perrill had stepped down.
As if that was not
Iris Energy Limited
(NASDAQ: IREN) – an owner and
operator of institutional-grade, proprietary Bitcoin-mining data
some recourse equipment financing issues in its Nov. 2 Financing and
Bitmain Prepayment Update.
“The limited recourse equipment financing
arrangements have been a recent focus for us. We remain committed to
exploring a way in which we may be able to allow the lender to recover
its capital investment,” Iris Energy Co-Founder and Co-CEO Daniel
“However, we are also mindful of the current market and that
these arrangements were deliberately structured to minimize any
potential impact on the broader group during a protracted market
Bitcoin mining companies such as Core Scientific, Compute
Riot Blockchain Inc.
(NASDAQ: RIOT) and
(NASDAQ: CLSK) often take on debt to remain competitive in a
business with huge capital expenditures in the form of electricity
costs, facilities and mining equipment.
Some companies, like Iris Energy, Compute
North and Core Scientific, have become cash-strapped because of rising
electricity costs and tumbling cryptocurrency prices. These bankruptcy
stories seem to highlight that there may be extreme financial and
infrastructure undersupply in the cryptocurrency mining
Any Bright Spots in the Cryptomining
With a growing undersupply of crypto mining infrastructure,
Mawson Infrastructure Group Inc.
’s (NASDAQ: MIGI) large-scale
excess infrastructure capacity could provide some hope for the
is a digital
infrastructure provider with multiple operations throughout the U.S.
and Australia. The company’s vertically integrated model is based on
a long-term strategy to promote the global transition to the new
Mawson says it matches sustainable energy infrastructure with
next-generation mobile data center (MDC) solutions, enabling low-cost
Bitcoin production and on-demand deployment of infrastructure
strong focus on shareholder returns and an aligned board and
management, Mawson could emerge as a global leader in environmental,
social and governance (ESG) focused on Bitcoin mining and digital
infrastructure, given its large-scale excess
While other companies were struggling to stay
afloat, Mawson may have recently grabbed the industry’s attention
its growth and expansion strategies on Oct. 18.
The company revealed
that it was relocating its application-specific integrated circuit
(ASIC) servers from Georgia to Pennsylvania while continuing the
expansion and development of Pennsylvania facilities — Midland, 100
megawatts (MW) and Sharon, 120 MW.
Mawson also said it will secure an additional
large-scale site for long-term digital infrastructure capacity,
explore opportunities to expand its digital mining business and
develop strategic partnerships and relationships with customers and
June, the company
a 33% shareholder in Tasmania Data Infrastructure Pty Ltd. (TDI). TDI
developed a large-scale, 100% renewable energy Bitcoin mining facility
at the Que River Mine site in Tasmania, Australia, with up to 35
megawatts of energy infrastructure available for Bitcoin mining.
residual infrastructure portfolio of 350 MW is capable of
accommodating up to 12 EH.2, which ensures Mawson continues to have
substantial expansion capacity for 2023. Our focus on facilities with
close geographic proximity allows us to ensure maximum operational
efficiencies moving forward,” CEO James Manning said in a press
Mawson Infrastructure Group (NASDAQ: MIGI) is a
digital infrastructure provider, with multiple operations throughout
the USA and Australia. Mawson’s vertically integrated model is based
on a long-term strategy to promote the global transition to the new
digital economy. Mawson matches sustainable energy infrastructure with
next-generation Mobile Data Center (MDC) solutions, enabling low-cost
Bitcoin production and on-demand deployment of infrastructure assets.
With a strong focus on shareholder returns and an aligned board and
management, Mawson Infrastructure Group is emerging as a global leader
in ESG focused Bitcoin mining and digital
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TraDigital IR- Colette Eymontt
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