Market Update: Illiquid Pools!

Published: Tue, 09/06/22

September 6, 2022
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Poolin halts payouts citing 'liquidity' troubles

 

Poolin, the fourth largest Bitcoin mining pool by hashrate , announced a temporary pause on withdrawals to preserve “assets, stabilize liquidity, and operations in the midst of the dull crypto market,” according to a company blog post. Miners responded by yanking hashrate away from the pool, now down 30% to 19 EH/s.

 

The announcement follows weeks long rumors about the firm’s internal stability.

It’s unclear what the actual cause of the firm’s liquidity issues are. Poolin’s mining arm is still seeking the green light from the Energy Reliability Council of Texas (ERCOT) for a few-hundred megawatt (MW) site in Texas that remains idle. The firm had projects with both defunct crypto hedge fund Three Arrows Capital (3AC) and troubled lending product BlockFi for mining financial services

 

Poolin was also heavily involved in the Chinese mining scene before the abrupt banning of mining in the country. For example, the pool had to halt withdrawals of its tokenized hashrate product ‘pBTC35a’ last summer as its machines found new homes abroad.
 

For now, Poolin maintains that assets are #safu while it “explores strategic alternatives with various parties” to restore financial safety. Stay tuned!

Disclaimer: This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any investment or to adopt any investment strategy. This information is for educational purposes only and is as of the date of that particular presentation. Compass does not guarantee profits from mining activity.

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Bitcoin price ($)

Bitcoin hangs around $20,000 post-Jackson Hole, selling off after a hawkish Fed confirmed its intention to continue fighting inflation.

Difficulty (T)

Bitcoin's difficulty rose 9.3% last week, nearing its record high of 31 trillion. Cooler temperatures, ERCOT greenlighting mining operations such as Marathon Digital's deployment with Compute North and stable hashprice likely spurred the difficulty increase.

Hashprice ($, Sats)

Hashprice measured in Satoshis came plummeting back to earth after the latest difficulty adjustment. Dollar-denominated hashprice sits below $0.10.

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