Hut 8 CEO: A significant amount of mining company mergers and acquisitions will occur when BTC drops to $30,000 to $40,000

ChainCatcher news, Hut 8 CEO Asher Gennot stated that the number of bankruptcies among Bitcoin (BTC) mining companies in the coming years will be much lower than in 2022. The bankruptcies in 2022 were primarily due to companies being over-leveraged and unable to cope with rising energy costs.

However, Genoot mentioned that since then, Bitcoin mining companies have generally relied on less leverage and more debt-free capital from equity markets to grow their businesses. He expects to see an increase in merger and acquisition activity among smaller Bitcoin mining companies, which could lead to a significant reduction in bankruptcy rates. Genoot explained that Bitcoin may need to pull back to $30,000 or $40,000 before a substantial amount of merger activity or "distress opportunities" arise.