Most Public Mining Companies Saw Drawdowns Of 90% Or More In 2022
As per the year-end report from , 2022 was a very challenging year for public firms in the crypto sector. The below chart displays the drawdowns in the valuations of some of the big players in the market, as well as that of Bitcoin, during the last twelve months:The deep red performance of the public companies in the digital asset sector | Source:
As the graph shows, Bitcoin performed terribly this year, seeing negative returns of around 65%, but the large public crypto firms have done worse still. Even Microstrategy, the company whose stocks’ main attraction is exposure to BTC through its large reserves, couldn’t perform comparably to the asset and observed a deeper year-to-date drawdown of about 74%.
The market cap of the popular crypto exchange Coinbase has gone down by 87% this year, which has led to the firm being valued lower than meme coin Dogecoin. The worst performer in the list seems to have been Core Scientific, recording a drawdown of 99%. Core Scientific is one of the biggest Bitcoin mining companies, but due to these large losses, the firm had to file for Chapter 11 bankruptcy earlier in the month.
Similarly to Core, other BTC miners have also sustained major drawdowns this year, with most of them being 90% or more underwater for the period. But why did the mining firms perform especially poorly? The explanation behind that is multifold.BTC Price
At the time of writing, Bitcoin is trading around $16,500, down 2% in the last week.Looks like BTC has gone downhill in recent days | Source: