According to a report from Bloomberg, a number of loans backed by crypto mining rigs are underwater, with Luxor’s Ethan Vera estimating around $4 billion in loans to be extremely close to running a risk of default.
According to JPMorgan analyst Nikolaos Panigirtzoglou, bitcoin miners need to sell BTC in order to bolster operational costs. Bitcoin’s more than 20% drop in the last two weeks is hurting miners a great deal, with a number of reports showing that privately-held miners have been selling a large share of block subsidies to help operational costs since February 2022.