In the midst of a protracted bear market, concerns have been expressed regarding the general health of the public <a href="https://www.cryptoknowmics.com/news/bitcoin-mining-firm-bitfarms-settles-27-million-in-debt">bitcoin mining</a> community following the recent bankruptcy proceedings of bitcoin miner <a href="https://www.cryptoknowmics.com/news/core-scientific-to-file-bankruptcy-and-continue-mining-during-the-process">Core Scientific</a> despite a $72 million rescue offer from creditors. It turns out that the public bitcoin mining firms have obligations totaling over $4 billion, and they need to immediately restructure their debt to get rid of the unsustainable amount of debt.
<h2>Public Bitcoin Mining Firms on a Debt</h2>
During the bull market of 2021, the Public Bitcoin Mining industry took on a considerable amount of debt, which had a severe effect on their bottom lines during the following bear market. The top 10 Bitcoin mining debtors owe more than $2.6 billion, according to <a href="https://hashrateindex.com/blog/which-public-bitcoin-miners-owe-the-most-money/?utm_source=twitter&amp;utm_medium=jaran" target="_blank" rel="nofollow noopener">data analytics</a> by Hashrate Index.

Due to declining sales and BTC prices, Core Scientific, the largest debtor in the group with $1.3 billion in liabilities on its income statement as of September 30th, has filed for <a href="https://www.cryptoknowmics.com/news/celsius-receives-extension-to-file-chapter-11-restructuring-plan">Chapter 11</a> bankruptcy protection in Texas. <a href="https://www.cryptoknowmics.com/news/marathon-is-currently-second-largest-publicly-traded-bitcoin-holder-ceo">Marathon</a>, the second-largest debtor, has mostly convertible note liabilities worth $851 million. Thus, Marathon avoids bankruptcy by enabling the holders of convertible bonds to exchange them into shares of stock.
<h2>Restructuring Plan to Pay Off Debt</h2>
The majority of Bitcoin miners, including <a href="https://www.cryptoknowmics.com/news/greenidge-changes-executive-team-predicts-deficits-in-q3">Greenidge</a>, the third-largest debtor, are going through a reorganization procedure to pay off debt. The debt-to-equity ratio of publicly traded bitcoin mining businesses suggests a substantial risk for the sector.

The mining industry may experience possible reorganizations and bankruptcy filings unless the bulls stage a return, given that more than half of the 25 publicly traded bitcoin miners flaunt exceptionally high debt-to-equity ratios. While some businesses may halt or scale back operations to cut costs, this will enable sustainable miners to increase their presence as they acquire the facilities and machinery of rival enterprises.

Public Bitcoin Mining Firms Stuck With $4 Billion of Collective Debt

Public Bitcoin Mining industry took on a considerable amount of debt, which had a severe effect on their bottom lines during the following bear market

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Public Bitcoin Mining Firms Stuck With $4 Billion of Collective Debt

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