Miners began selling cryptocurrency mining equipment at a discount of more than 75% to close loans

Companies that were engaged in cryptocurrency mining are now beginning to sell off mining equipment en masse at discounts of over 75%.

Here's What We Know

The average cost of equipment is $24 per 100 Terraheesh. Over the year, it has fallen in price by about 77%, because only 12 months ago you had to pay an average of $106 for equipment that provides this level of performance.

The collapse of the cryptocurrency market began after the Federal Reserve decided to raise interest rates. After that, investors lost interest in risky assets, which include the virtual currency.

Within a year, the value of Bitcoin dropped by 70%, leading to a sharp decline in mining in general. Companies that took out loans to buy equipment are now trying to sell it at a discount to pay off debts.

Along with the digital currency, the mining companies themselves are getting cheaper, and at an even higher rate. For example, shares of Core Scientific fell by 99%. TeraWulf, Stronghold Digital Mining and Riot Blockchain fell by 93%, 94% and 74%, respectively. Argo Blockchain PCL got into a curious situation. It sells 3,800 cryptocurrency mining rigs that haven't even been unpacked yet.

Despite all of the above, the market is not dead yet. Cryptocurrency mining is profitable for those miners who do not have large debts. And now they have a great opportunity to buy new equipment at low prices.

Source: WSJ