The Mining Report with Wolfie Zhao: When miner capitulation?

Episode 69 of Season 4 of The Scoop was recorded remotely with The Block's Frank Chaparro and The Block Research Mining Research Analyst Wolfie Zhao.

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Following the crypto market crash in May and June, several institutional bitcoin mining companies have liquidated large portions of their bitcoin reserves, adding more fuel to the selling pressure.

In this episode, we discussed the impact of the shrinking hash price and the profitability of bitcoin mining at the moment. The network's hash price has reached the lowest point since late 2020 due to bitcoin's price decline and only moderate difficulty correction. Even though the network has had three difficulty declines in a row over the past month, the competition level is still up by about 10% year-to-date.

Meanwhile, the global energy price surge and inflation are pushing mining firms' production costs even higher – not to mention that a lot of them also have growing interest expenses on outstanding loans they took since last year. If bitcoin's price drops below the critical $15,000 level, we may start to see miner capitulation. Listen to more of our discussions below.

In this episode of The Scoop Mining Report, The Block Research's mining analyst Wolfie Zhao and host Frank Chaparro take a further look at the pressures facing miners in today's market environment and how recent heatwaves have affected mining operations today.


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This episode is brought to you by our sponsors Chainalysis & IWC Schaffhausen

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