The CEO of the Canadian mining company Hut 8, Asher Genut, said that he does not expect mining companies to leave the market in the near future due to financial problems.

Asher Genuth, the head of one of the largest Bitcoin miners and energy infrastructure operators in North America, said in an interview with Bloomberg that we should not expect a repeat of the situation in 2022, when many companies were forced to file for bankruptcy.

He believes that much of the financial problems of cryptocurrency mining companies were caused by excessive debt and their unpreparedness for rising energy costs.

Let us recall that in 2021, Bitcoin miners took out loans in large quantities, which allowed them to expand their infrastructure. But after the fall in the value of cryptocurrency and an increase in electricity tariffs, companies were unable to repay their debt obligations.

In 2022, such large industry players as Celsius Mining and Core Scientific filed for bankruptcy. Genut emphasized that now miners rely less on leverage and are raising funds in the form of equity capital to develop their business.

Hut 8 previously announced the closure of its farm in Drumheller, Alberta. Hut 8 closed its Bitcoin mining facility due to rising electricity prices and systematic power outages.