In the aftermath of the cryptocurrency downturn in 2022, many Bitcoin (CRYPTO:BTC) mining companies faced bankruptcy.

However, Hut 8 CEO Asher Genoot is optimistic that the industry will see fewer insolvencies in the years following the upcoming Bitcoin halving.

In an interview conducted on April 3 with Bloomberg, Genoot attributed the wave of bankruptcies in 2022 primarily to companies being excessively leveraged and ill-prepared for the surge in energy costs.

He explained that the financial trouble faced by the mining sector was significantly due to the leverage strategies employed in 2021, suggesting that lessons have been learned and the industry may be moving towards more sustainable practices.