CEO Mike Novogratz’s Galaxy Digital has a grim outlook for Bitcoin miners in 2023. According to a report released by the New York-based crypto investment firm, financing will be hard for businesses operating in the mining and hosting space.
A string of bankruptcies and scandals paired with record high energy prices and network hash rate made 2022 the perfect storm for Bitcoin miners, says Galaxy Digital. Growth has become a secondary priority as survival takes the top spot. The issues that plagued 2022, including a discouraging regulatory environment and ever-growing FUD, will continue in 2023.
As per the report, publicly traded mining firms defaulted on 11.59 EH of hash rate through ASIC-backed loans in 2022. The defaults may have helped conserve cash but eroded investors’ confidence in the mining sector. “Miners won’t have the same access to funding through capital markets in 2023 as they did in 2021 and early 2022,” the report stated.
However, another sourc …
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