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Shares of public cryptocurrency mining companies collapsed due to investors’ uncertainty about the future of bitcoin, writes Bloomberg
The fall in bitcoin forced investors to reconsider their investments in mining companies. Bloomberg writes about this with reference to market quotes of public companies.
For example, shares of the mining company Marathon Digital Holdings (MARA) tumbled 13.2% on Thursday to $ 29.6. The shares of Riot Blockchain, Greenidge Generation Holdings and Stronghold Digital Mining also lost in price, falling by 7.6%, 5.6% and 0.67%, respectively.
The miners who deployed their capacities in Kazakhstan also got it. On the back of negative news, shares in China’s Canaan plummeted nearly 8.5% to $ 4.7. Earlier, the company reported on the placement of more than 10,000 mining farms in Kazakhstan. The total capacity of all installations can be up to 850,000 Tx / sec.
Recall, in addition to Canaan, the Chinese company Bitmain also placed a mining farm in Kazakhstan. In the summer of 2021, the manufacturer of mining equipment began cooperation with the Kazakh data center ENEGIX, agreeing to place Antminer S19 Pro mining devices in Kazakhstan.
Read also: Kazakhstan has blocked access to the Internet. Who is under attack
The collapse of quotes is unlikely to prevent mining companies from developing in the future. According to analysts at the consulting firm Cantor Fitzgerald, in the long term, Bitcoin will still pay off the investment in itself through mining, even despite the outbreak of volatility.
At the end of October, it became known that cryptocurrency miners pouring in from China forced Kazakhstan to pay Russia for unscheduled power flows. How much Kazakhstan had to overpay due to the activity of cryptocurrency miners is still unknown. However, it is known that excessive power consumption by miners has led to the fact that the republic is faced with power flows. Their volume was estimated at 1-1.5 GW per day.
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