BEAR MARKET IS AFFECTING ALL ARMS OF CRYPTO INCLUDING MINING
On Tuesday, Bitcoin (BTC) mining company Mawson Infrastructure Group said it would suspend capital expenditure until market conditions improved. In addition, the company voluntarily reduced its energy consumption, also called demand response, due to market sales and higher electricity prices due to inflation.
Mawson received the final shipment of Canann A1246 ASIC Bitcoin Miners in June and has no further payments due to Bitcoin mining equipment. Regarding the company's decision, CEO and founder James Manning said:
"Despite the volatile market, Mawson is currently mining for himself and is participating in plans to respond to energy needs where appropriate. In addition, we are fortunate not to have any remaining contracts to purchase ASIC Bitcoin Miners, which enables us to focus on developing our company. Bitcoin value is pressed.
In its latest monthly review, Mawson disclosed that he owns more than 40,000 Bitcoin-Specific Integrated Circuit (ASIC) mining equipment. Taken together, the rigs have an average hash of 3.35 exahash per second, accounting for approximately 1.675% of the total value of the Bitcoin network hash. Last year, the company made $ 19.4 million in total revenue and spent $ 6.03 million on major expenses, or purchasing goods and equipment.
The ongoing cryptocurrency bear market has hit Bitcoin miners hard, with reports that the miners sold their entire May harvest. Mining revenue in the sector has since declined to a low level in May 2021. Meanwhile, energy costs have risen in part due to the collapse of the Russian invasion of Ukraine. As a result of such a combination of risk factors, the Bitcoin hash rate has dropped by almost 25% in just the past two weeks.