The all sized Cryptocurrency miners all over the world have been facing serious issues from the bear market as the market has depressed the prices of the Cryptocurrency to a larger extent that has resulted in some of the miners to leave the field as their proceedings were not covering the expenses. Moreover it has been found out that some miners have utilized this time for their growth while their competitors were still struggling.
Earlier this month, Bitfarms Ltd. (TASE: BLLCF) notified their investors that it has secured an amount of $20 million in strategic debt financing aiming to fund the Cryptocurrency mining company’s operational expansion that is still running. The company received the capital from the New York based Dominion Capital and will be made accessible in four tranches of $5 million that are tied to the several milestones like infrastructure building and purchases in hardware. The loan will possess an interest rate of 10 percent and Dominion will be able to receive around 6.7 million of equity purchase warrants that might be exercised to have their hands on the common shares of Bitfarms.
Apart from the negative effects of the bear market, the situation also yields some opportunity for the big miners. The opportunities include the relatively cheaper hardware prices which might help in killing off the weaker competitors who has complete dependency on the more pricey electricity and preventing the new miners from gushing into the business. The CEO of Bitfarms has stated that it has been very challenging for the various Cryptocurrency miners to maintain the level of profitability as at the current network difficulty and pricing of BTC, an average miner allocates 10% power to cooling. Despite of this condition, Bitfarms have seen an exponential growth in the network hash rate.