Publicly listed cryptocurrency mining companies continue to suffer heavy losses on the global exchanges, as Bitcoin struggles to stay above the US$20,000 support price.
In the NASDAQ mid- and large-cap segment, Hut 8, Canaan, and Bitfarms (TSX-V:BITF) lost a median 68.3% of their stock prices in the second quarter, buoyed slightly by Canaan’s comparatively modest 58.8% decline after a US$6.61mln share buyback.
Losses were more pronounced for the NASDAQ small caps, with Marathon and Riot Blockchain shedding 80% and 79.5% respectively.
Toronto-listed Hive Blockchain Technologies, which has mining operations in Canada, Iceland and Sweden, was the heaviest hit, having fallen 94% in Q2.
In the London markets, Argo Blockchain, whose operations span the North American continent, dropped 56.5% from 7,600p to 3,300p in the second quarter.
But with the struggling crypto mining sector comes one potentially positive offshoot:
The sector’s country-sized carbon footprint has momentarily been slashed, even though total power consumption still outstrips the entire nation of Belgium.
The Bitcoin Electricity Consumption Index run by the University of Cambridge outlines a 28% decline in daily network power demand since April 1.
Etherum’s total power consumption has plummeted even further; nearly 40% according to data supplied by Digiconomist.
Since crypto miners’ profits are at the whims of market trading values, declining profits come as little surprise, especially given the double whammy of lower mining rewards and a smaller share of transaction fees.
But miners face threats from other directions:
US and European lawmakers have recently attempted to pass anti-mining regulations citing environmental concerns.
While these proposals have so far failed to gain significant support at the national level, New York lawmakers have proved to be a thorn in backside of the state’s recent mining boom following numerous permit denials passed by the Senate.
With Bitcoin desperately attempting to keep its head above the US$20,000 support level and Ethereum trading sideways in recent weeks, it could be a while yet before crypto miners dig themselves out of trouble.