If you just entered the bitcoin space in the last two years… WELCOME TO THE BEAR. And boy is this quite the bear. Our miners are out here strugglin’, and I wouldn’t expect anybody to be coming to the rescue.
Crypto has done a great job of illegitimizing itself. The blow-up of “DeFi Summer,” Terra-Luna going ‘nova, and now the FTX debacle proving to have been an incestuous blackhole of any dollars being thrown in their general direction. To that end; great stuff guys, awesome job. But if you’ve been around since ‘17, this is all pretty par-for-the-course in that realm. Unfortunately for bitcoin, we have to deal with the Brandolini Effect thanks to the mob of children and snake oil salesman putting in hours deploying grift campaigns to try and position their own brands as close to BTC as possible.
Now then, back to the brief.
As I mentioned, the bitcoin miners are getting absolutely trounced. I won’t waste time going through the reasons why the difficulty here for the entire sector is monumental, for those that would like to understand, check out my previous write-up over the space. Which, by the way, was followed by the capitulatory events that I warned about only a few days following. And that news has only continued to swell since. So, to that end, I will brush my shoulders off — nice job me.
NOW. Things have only continued to get worse since. With hashprice continuing to trend lower, those that were already scraping-by are most assuredly panicking now. And now that winter is officially beginning to hit, I wouldn’t expect relief in the form of energy prices becoming cheaper. For a LONG time — at least in any sort of extended duration. This is something that I also warned about in the aforementioned article.
Something else that I’ve also discussed are the improvements upon production metrics that O&G gain by incorporating bitcoin miners into well pad operations directly, as a waste gas & emission mitigation strategy. Meaning, our major oil producers will most assuredly be watching the space; looking to nab-up hardware and infrastructure on the cheap-cheap.
What this also means: O&G will not be coming to any sort of rescue. These players are most incentivized to not step in the way of the bloodletting. Letting those who got overextended with their debt load, and who failed to properly negotiate long-duration PPAs, will get culled by the market and forced to liquidate at much more desirable rates.
Those to keep an eye on include (but are not limited to): Chevron, Exxon, and ConocoPhillips.
That’s all, nice and brief. Catch my write-up that’s coming tomorrow morning, and keep an eye out for my “big one” that I’m putting the finishing touches on. It has to do with this exact topic: Oil & Gas + Bitcoin Mining.
Enjoy your Thanksgiving — make sure to get in a quality workout (LEGS) tomorrow before the feasting — and make sure you like, share, and subscribe!