Despite the steadily declining price of Bitcoin and the turmoil in the markets today, some of the largest mining companies are insecure, claiming that their operations will not be affected by negative price fluctuations.
Some even see it as an opportunity to gain market share when smaller competitors collapse.
The price of Bitcoin (BTC) has been steadily declining throughout the year until the last 24 hours, when the collapse hastened to reach its lowest point since December 2020. However, the number of miners has not been reduced amid the enormous pressure. Some might even be more keen on mining if the Bitcoin downturn continues until 2022.
Each of the three different mining operations – two large public companies and one private mining company – that Cointelegraph reached out to share cold feelings about the potential of the bear market. They believe that it will have little or no effect on their business plans.
Bitcoin miner Marathon Digital Holdings (MARA) said the “asset light policy” would keep it isolated from almost all of the bear market’s effects. Charlie Schumacher, Chief Communications Officer, told the Cointelegraph that it maintained a cost base of about $ 6,200 per BTC earned in the first quarter by “outsourcing the muscle of our business and maintaining intellectual power within the company.”
Marathon is the third largest holder of Bitcoin (BTC) among public companies according to BitcoinTreasuries. It has the capacity to produce 3.9 emissions (EH / s) of hash flow. MARA has decreased by 15.42% and trades at $ 9.97 after trading. It has decreased by 92.6% from the peak in December 2014 to $ 134.72.
Schumacher added that the elimination of other miners due to capital constraints in bear markets creates opportunities for larger activities such as Marathon, which can take advantage of reduced mining difficulties due to the reduction of hashpower and competition in the Bitcoin network.
“When the hash rate drops, there is a downward difficulty adjustment, which reduces the energy costs of miners who continue to hassle. Those who stand up can therefore benefit from potentially earning more Bitcoin.
Cointelegraph also received responses from Riot Blockchain (RIOT) CEO Jason Les, another major mining company. It now has the eighth largest BTC among public companies according to Bitcoin Treasuries. It controls 3.9 EH / s of hash power as of March 4, but did not disclose its cost per coin processed.
RIOT has decreased by 9.16% and trades at $ 6.83 after trading. It has fallen by 90.5% since its peak in February 2021 to $ 71.33.
Les also seemed flippant about current and future fluctuations in the Bitcoin market. Like Marathon and Redivider, Les cited the “strong balance sheet of its business without long-term debt” as a key strength that it can rely on from a business standpoint. He added: “Changes in Bitcoin’s market conditions do not affect our mining distribution plans, so we continue to increase our hash rate monthly.”
“Riot’s mining distribution plans do not affect Bitcoin fluctuations; we focus on building a sustainable business that operates in a variety of Bitcoin market conditions.”
Tom Frazier, CEO of Redivider, also has no problem with the possibility of a further prolonged downturn. Redivider is a privately owned Bitcoin mining data center specializing in opportunity areas designed to benefit workers in poor areas of the United States
At the heart of Redivider’s 1.5-year-old business is managing data centers where mining companies can lease Bitcoin hash power for a fee. Frazier told the Cointelegraph in a May 11 phone call that if its data center has no tenants at any given time, Redivider can maintain revenue streams for all of its facilities at any given time by taking on the hash power and closing rewards for itself.
He did not disclose the base price of the Redivider for each Bitcoin worked or its size, but he assured that “our BTC production price will not affect it.”
Frazier said the downturn in the Bitcoin market “had little effect on what we were doing because of our 10-year plan.
“Adjustments in the market are taking place because BTC is very volatile, which is in line with every other volatile asset class. That instability will not hinder our policy. These moments offer opportunities. “
Connected: Bitcoin struggles to hold $ 29K as fears of regulation and Terra’s UST explosion hit cryptocurrency hard
Given the current turmoil in the cryptocurrency markets following the collapse of the Terra (LUNA) project and Bitcoin now at $ 28,931, the lowest level since January 1, 2021, according to CoinGecko data, it could soon become clear whether miners can jump at the chance at their doorstep. and they argue.
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