Core Scientific, one of the largest publicly traded cryptocurrency mining firms in the US has its market valuation decreased to about $78 million as a result of the shares losing about 98% of their value so far in 2022.
The biggest blow occurred after significant cryptocurrency exchange FTX sought bankruptcy relief last month. According to the corporation, its assets and liabilities ranging from $1 billion to $10 billion, and its creditors range from 1,000 to 5,000. Other cryptocurrency miners’ stock prices have fallen more than 80% this year, including Riot Blockchain, Marathon Digital, and Hut 8 Mining Corp.
Since the FTX crash, several crypto firms have been plagued by contagion worries, which has dashed hopes for a near-term recovery in the price of digital assets. Bitcoin, by far the most widely used digital currency, is down more than 60% this year after experiencing significant growth in 2020 and 2021, putting pressure on the cryptocurrency mining industry. In a statement, Core Scientific stated that the extended reduction in the price of bitcoin was to blame for the company’s declining operating performance and liquidity.