Back in 2021, Bitcoin mining was a highly lucrative business. This is because BTC was trading well above the $30,000 mark, even reaching an all-time high of $67,000. However, things have only gone south since then.

The crypto winter, amplified by several disastrous events, has caused token prices to plummet. For instance, Bitcoin, the world’s oldest cryptocurrency, is down nearly 75 percent from its all-time high. This has had an immediate impact on Bitcoin mining firms.

Towards the end of December 2022, Bitcoin mining profitability had declined 70 percent and mining stocks registered 80 to 90 percent drops. As such, several of the top Bitcoin mining firms are now staring at massive losses.

For instance, on December 20, one of the largest Bitcoin mining firms, Core Scientific, filed for Chapter 11 bankruptcy. This is after the company’s stock dropped 98 percent in 2022. The firm’s market capitalisation is also in free fall, dropping from a $4.3 billion valuation in July 2021 to a mere $42 million at the time of writing.

Another prominent miner, Riot Blockchain, saw its stock tumble 85 percent in…