According to a study carried out by Arcane Research, most public mining companies have reported retained losses on their balance sheets despite a strong 2021.
The company specialists have studied the financial statements of Argo Blockchain, Bitfarms, CleanSpark, Stronghold, Hut 8 Mining, Marathon Digital Holdings, Riot Blockchain as well as Core Scientific.
They have found that only the first had retained earnings of $26 million, while the rest of the list had retained losses ranging from $137 million to $1.3 billion.
Core Scientific’s retained loss of $1.3 billion stems from a negative revaluation of $788 million in goodwill from the acquisition of BlockCap in July 2021. The latter’s identifiable net assets at the time of the transaction were $142 million, while the acquisition price was $1.2 billion.