Celsius’ Mining Rigs Shutdown – 234

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Citing the non-payment as a major factor In the liquidity issues that led to the Bitcoin miner filing for chapter 11 Bankruptcy on December 21st on December 28th core scientific filed a motion Seeking approval to reject Celsius Contracts claiming the firm's failure to Pay its power bills constitute a Material breach of contract according to The court filings the termination of the Agreement would apparently allow core Scientific to generate a revenue of two Million dollars per month from the space Currently occupied by Celsius mining Rigs The hosting deals terms allow core Scientific to pass on some of the power Costs to Celsius and those costs have Considerably increased since Russia's Invasion of Ukraine Um you know yeah I guess but you know What also it has to do it has to do with The fact that we're sending a bunch of Money over to Ukraine from the U.S while Neglecting our own energy production Stateside It's shameful at this point and you're Destroying businesses all across the Nation over this and destroying the Livelihoods of the entire middle class And it's just not acceptable anymore It's so frustrating they want to always Like our government wants to blame and Everything in in mainstream media wants

To blame Russia and Ukraine for Everything Meanwhile we're sending money We don't have over there According to the rejection motion Covering the increased power fees cost Core scientific almost 7.8 million Dollars as of December 28th and the Miner noted it quote cannot afford to Continue shouldering the burden of Celsius on Celsius unpaid power costs The cost of production has increased for Minors while the price of Bitcoin has Decreased which has eaten into Miner's Bottom line and contributed to the hash Price The revenue Bitcoin miners can earn per Unit of hash rate falling over 75 Percent over 2022 and you know they're Not wrong I I was at probably 60 percent Right before we were like Shut it down boy shut it down we had uh Energy costs increase 300 percent over The past three months since September in My particular area Um and the and the power companies not Basically adhering to their own power Agreements their own ppas and Essentially utilizing you know basically Very sneaky terms to inflate the cost of The power bill while not giving you a Stated rate because if they change the Rate they would break their purchasing Their power purchasing agreement so Instead of changing the rate They just

Added fees on that were unpredictable And when you ask them what those fees Were they would point you to the fees And you would say well it says six and a Half cents here all in and you're Charging me 14 and a half cents so Where's the extra money coming from well Of course Russia and Ukraine it's their Fault guys it's it's their fault don't Worry about it and we can't tell you how Much is going to cost and yes you're Gonna have to shut down your business And file for bankruptcy sorry about that That's just how it's going to roll it is What it is we're just kidding it is what It is mine is lack of profitability Combined with the costs associated with Expansion efforts caused by cause many Bitcoin miners to struggle toward the Ends of 2022 and share prices plummeted As a result core scientific has seen Their share price Fall by 99.15 percent over the course of the Year while Iris energy and Riot Blockchain saw Falls of 91.79 and 85 Percent respectively Now Going back to this this isn't the entire Reason for the failure of core Scientific of course and Celsius because We have to talk about the elephant in The room which were these large Unsecured basically hardware-backed Loans and anybody that knows the mining

Industry that's been in it for any Cycles whatsoever knows that the price Of Hardware significantly decreases Uh throughout the cycle right this isn't Anything new you could be completely Outside of a recession at this point and Still have Bitcoin miners due to the Having cycle of Bitcoin be in trouble Because they took out loans to purchase Miners when they were 300 percent more Than they are currently worth if not Even like more than that now because I Think some of these s19s were going for Close to 21 000 and some of them you Know used Market are starting to drop Below that 2500 Mark meaning like it's Just like it's completely obvious that This is going to happen in overextending And getting greedy within you know Without Respecting the having cycle you know put You in this position so to a certain Extent yes I I do agree that of course You know we have energy prices that are Absolutely destroying everything and the The amount of of cash flow that you can Get off of a mining Farm is extremely Low due to the price of energy yes I Understand that but Even outside of that the numbers still Wouldn't add up for a majority of these Machine-backed loans What that means is that you should be in A position at any time to be once again

Getting yourself into a cash position For the for the second half of the cycle So that you can purchase equipment at Extremely low prices and then sit on That equipment of course until you get To the next Bull Run which is the next Having about six months to a year after That and then mine that would be the Strategy I would Implement and it's it's Actually quite surprising that Anybody would have thought it was a good Idea to take hardware-backed loans in This industry Period thanks for checking out this clip From the crypto mining show you can Check out the full episode here or more Crypto content down here also I'd like You to check out my locals page at son Of a tech.locals.com where you can Become a member for free or choose to be A five dollar a month supporter that Unlocks additional content

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