Cryptocurrency

Bitcoin

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 <p class="paragraph">The last few years were marked by a rising institutional interest in Bitcoin (BTC). Publicly traded Bitcoin <a rel="noopener noreferrer nofollow" title="mining" href="https://thebittimes.com/tag/mining.html">mining</a> companies surged in numbers and capitalization, attracting giants like BlackRock.</p>
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 <p class="paragraph">However, these companies’ results tell a story of enormous challenges that must be overcome moving forward. In particular, data from <em>CompaniesMarketCap</em> shows total losses of $2.75 billion for the sector among 17 companies.</p>
 <p class="paragraph">Bit Digital (NASDAQ: BTBT) is the “most profitable” publicly traded Bitcoin mining company. Notably, its total earnings of minus $28.39 million since 2022 Q4 are ranked first by this metric, followed by even worse results. BTBT has $300 million in market capitalization.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="333" src="https://cdn.thebittimes.com/images/2023/12/20/125170cbf59053cd703ef49b604a68f6.webp" alt class="wp-image-144063" srcset="https://cdn.thebittimes.com/images/2023/12/20/125170cbf59053cd703ef49b604a68f6.webp 1024w, https://cdn.thebittimes.com/images/2023/12/20/125170cbf59053cd703ef49b604a68f6.webp 300w, https://cdn.thebittimes.com/images/2023/12/20/125170cbf59053cd703ef49b604a68f6.webp 768w, https://cdn.thebittimes.com/images/2023/12/20/125170cbf59053cd703ef49b604a68f6.webp 1536w, https://cdn.thebittimes.com/images/2023/12/20/125170cbf59053cd703ef49b604a68f6.webp 1884w" sizes="(max-width: 1024px) 100vw, 1024px">
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   Top publicly traded Bitcoin mining companies by earnings. Source: <em>CompaniesMarketCap</em>
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 <h2 class="wp-block-heading" id="h-results-for-the-top-3-publicly-traded-bitcoin-mining-companies">Results for the top 3 publicly traded Bitcoin mining companies</h2>
 <p class="paragraph">Meanwhile, the top three publicly traded Bitcoin mining companies have accumulated huge losses from their IPOs.</p>
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 <p class="paragraph">The top three are composed of Marathon Digital Holdings (NASDAQ: MARA), Riot Blockchain (NASDAQ: RIOT), and Hut 8 Mining (NASDAQ: HUT). Each has a $4.85 billion, $3.52 billion, and $ 2.86 billion market cap, respectively.</p>
 <p class="paragraph">Interestingly, MARA accumulated $380 million in losses. RIOT has a slightly better result with $300 million, while HUT is the second <a rel="noopener noreferrer nofollow" title="company" href="https://thebittimes.com/tag/company.html">company</a> with higher earnings of $38.88 million in losses.</p>
 <h2 class="wp-block-heading" id="h-the-challenges-of-bitcoin-mining-as-a-business">The challenges of Bitcoin mining as a business</h2>
 <p class="paragraph">Bitcoin <a rel="noopener noreferrer nofollow" title="mining" href="https://thebittimes.com/tag/mining.html">mining</a> is a highly competitive “winner-takes-all” business. Approximately every 10 minutes, a block is mined by one single entity that receives the rewards through block subsidy or fees.</p>
 <p class="paragraph">In the meantime, it also has very high costs, which increase as more players join the competition. This happens through the <a rel="noopener noreferrer nofollow" title="mining" href="https://thebittimes.com/tag/mining.html">mining</a> difficulty adjustment that requires a higher hashrate – at higher costs – for the same chance of finding a valid block.</p>
 <p class="paragraph">Moreover, after <a rel="noopener noreferrer nofollow" title="mining" href="https://thebittimes.com/tag/mining.html">mining</a> the block and collecting the reward, these entities must also be able to sell the acquired BTC in order to pay for their expenses and partners. Essentially, this makes Bitcoin <a rel="noopener noreferrer nofollow" title="mining" href="https://thebittimes.com/tag/mining.html">mining</a> companies’ profitability highly dependent on Bitcoin’s price and a higher centralization.</p>
 <p class="paragraph">On the other hand, a higher centralization also diminishes Bitcoin’s security and could impact its value perception. Creating a paradox that must be overcome to keep these companies healthy.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk</em>.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/here-s-how-much-the-most-profitable-bitcoin-mining-company-lost-in-a-year-tbt74207.html">https://thebittimes.com/here-s-how-much-the-most-profitable-bitcoin-mining-company-lost-in-a-year-tbt74207.html</a></p>

Here’s how much the most profitable Bitcoin mining company lost in a year

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