Crypto Miners Receive a Reprieve as Bitcoin Price Surges 34%

• According to hashrateindex, crypto miners have raised a total of $1.8 billion in financing deals in the past two years.
• As of late, the crypto market has taken a turn for the worse, causing several crypto mining firms to file for bankruptcy.
• Despite this, Bitcoin prices have surged by 34% in the past week, providing miners with a much-needed reprieve.

Crypto miners have been a crucial part of the growth and operation of the Bitcoin network in the past two years. In 2020 alone, six ASIC financing deals were executed worth $47.84 million and the following year saw 26 financing deals completed, amounting to an impressive $662.25 million. Last year, the crypto mining industry raised a total of $641.80 million in 18 deals.

However, the situation has taken a drastic turn for the worse for miners following a significant shrink in crypto prices towards the end of last year. As a result, several crypto mining firms have been forced to file for bankruptcy protection, with some even selling off their rigs in order to pay off their debts. The situation has been exacerbated by the rising global inflation that has led to high electricity bills. As of now, updated Bitcoin mining rigs on average return a daily profit of about $5 depending on the location and difficulty.

Fast forward to the fourth week of 2023, and Bitcoin price has gained about 34 percent to trade around $22.6k on Wednesday. This has provided miners with some much-needed reprieve, with sentiment among them being better than it has been in a long time. Many of those who were on the brink of bankruptcy have been given a lifeline due to the sudden increase in the bitcoin price.

It remains to be seen if the crypto rally will continue and if miners will be able to stay profitable. With the ongoing inflation and rising electricity prices, the future of crypto mining remains uncertain.