Bitfarms CEO steps down; BTC Miners Struggle With Profitability

Bitfarms CEO Emiliano Grodzki has resigned. He will be replaced by Geoffrey Morphy, the company’s chief operating officer. It comes amid a disastrous year Bitcoin miners, Due to the declaration of bankruptcy of some big firms.

Minor announces Grodzki’s departure to A’s Statement, adding that he would continue to serve as a board director. Meanwhile, co-founder Nicolas Bonta will move from executive chairman to chairman of the board of directors.

Bonta credits Geoff for transforming Bitfarms from a purely Canadian trading business into a global force.

Bitfarms exec sold stake

Bitfarms is a multinational, publicly traded, self-mining firm established in 2017. Ten Bitfarm operated mining farms are located in Canada, the United States, Paraguay and Argentina.

Following the change, a Twitter user expressed concern about Argentina’s situation in the mining sector:

Grodzki also sold his stock in the company in the second half of 2022, according to Balmy Investor. Based on SEDI insider filing InformationThe former CEO had sold 1 million common shares of the company last month. Subsequently, the common stock balance held by him in December 2021 has decreased from approximately 10.83 million to 6.69 million shares.

SEDI insider files Bitfarms data via CEO.ca
SEDI insider filing Information via ceo.ca

Over the past year, Bitfarms’ trading value on the Nasdaq has also been dropped From $5.39 to $0.3760. That’s a drop of almost 93% in value. moreover, Industry players say Mining operations have suffered due to the continued decline in the price of BTC, rising electricity costs, and an increase in the total hash rate of the network.

BTC is registering weak sentiments, its price remains in the red. At press time, bitcoin is treading water above $16,400. In 2023, bitcoin is down 65% – 75% if you count from its all-time high of $69,000. Meanwhile, in the last 24 hours, the global cryptocurrency market cap has dropped to $826 billion per coingeco,

Miners record high D/E ratio

Last week, well-known American publicly traded bitcoin miner Core Scientific filed for Chapter 11 bankruptcy protection. news follows a long period crypto winter and sluggish bitcoin price movement; Both made worse than the FTX bankruptcy. The company appears to have had the highest debt-to-equity (D/E) ratio among its competitors and the highest debt borrowings.

Marathon, with $851 million in obligations, is the second largest debtor. BitFarms is a safe tenth, with $114 million in debt and no apparent risk of bankruptcy.

BitFarms is one of the top miners based on leverage taken from the hashrate index
BitFarms is one of the top miners based on liabilities hashrate index

according to hashrate index analyticsThe combined debt of publicly traded bitcoin mining companies exceeds $4 billion.

The platform notes that a debt-to-equity ratio of two or more is considered dangerous in most sectors. While Core Scientific had a D/E ratio of 26.7, it had a huge amount of liabilities. Argo has a D/E ratio of 8.7 too high As per the parameters of the platform.

Peers such as Riot Blockchain, Canaan Inc and Marathon Digital Holdings did not make the list. But another top player, BIT Mining Ltd. also has a high D/E of 4.4.

Top Miners Obtained from the Hashrate Index by D/E
Top miners are taken from here by D/E hashrate index

disclaimer

BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.


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