Miners are unaffected by the enormous anxiety in the Bitcoin market and may even welcome a decline since it allows them to acquire additional hashing power.
Despite the steady decline in Bitcoin (BTC) values and today’s market upheaval, several of the world’s top mining businesses remain unmoved, claiming that negative price volatility would have no effect on their operations.
Some see it as a chance to acquire market share when smaller competitors fail.
Bitcoin prices had been steadily declining throughout the year until the previous 24 hours, when they surged to their lowest level since December 2020. Despite the great strain, miners have continued to work. If Bitcoin’s slump continues into 2022, some may get even more enthusiastic about mining.
Each of the three mining operations we contacted two huge public corporations and one private mining company expressed pessimism about the bear market’s prospects. They expect it to have little or no impact on their business ambitions.
Marathon Digital Holdings, a bitcoin miner, claims that its “asset-light strategy” will protect them from almost all adverse market repercussions. Marathon Digital’s vice president of corporate relations, Charlie Schumacher, told us that the company kept its cost base of $6,200 per BTC mined in Q1 by “outsourcing the muscle of our operations while preserving the intellectual power within the firm.”
According to BitcoinTreasuries, Marathon is the third largest Bitcoin holding among public firms. It can generate hashing power of 3.9 exahashes per second (EH/s). In after-hours trading, Marathon Digital shares are down 15.42 percent to $9.97. It has fallen 92.6 percent after hitting a high of $134.72 in December 2014.
During weak markets, when other miners leave owing to cash restrictions, larger businesses like Marathon’s may take advantage of decreasing mining difficulty, according to Schumacher. The withdrawal of other miners owing to capital restrictions during downturn markets, according to Schumacher, presents an opening for larger operations like Marathon’s, which may benefit from decreasing mining difficulty as hashing power and competition on the Bitcoin network drop.
Jason Les, the CEO of Riot Blockchain, another major mining firm, also responded to js According to Bitcoin Treasuries, it has the eighth-highest BTC holdings among public corporations. As of March 4, it possessed 3.9 EH/s of hashing power but did not provide the cost each coin produced.
Riot Blockchain shares are down 9.16 percent in after-hours trading, trading at $6.83. It’s down 90.5 percent from its high of $71.33 in February 2021.
Les also seemed unconcerned about the current and future volatility of the Bitcoin market. Les, like Marathon and Redivider, cited his company’s “solid balance sheet with no long-term debt” as a crucial business strength. “Changes in Bitcoin market circumstances have no bearing on our miner deployment plans,” he said, adding that “we continue to raise our hash rate regularly.”
Tom Frazier, CEO of Redivider, is unconcerned about a lengthy downturn. Redivider is a privately owned data centre that specialises on Opportunity Zones, which are aimed to aid employees in underserved areas of the United States.
The 1.5-year-old company’s principal business is operating data centres where mining businesses may rent Bitcoin hashing power for a charge. Redivider can sustain a revenue stream for all of its facilities at any moment by adopting the hashing power and block rewards for themselves, Frazier told uson a Wednesday call.
He didn’t say how much Redivider charges every Bitcoin mined or how big its business is, but he promised Cointelegraph that “our BTC production price will not be harmed.”
Downturns in the Bitcoin market, according to Frazier, “have no effect on what we do because of our 10-year strategy.”
Given the current turbulence in the crypto markets following the Terra project’s demise, and Bitcoin presently selling around $28,931, its lowest level since January 1, 2021, according to CoinGecko statistics, it may become clear quickly whether miners can capitalise on the opportunity at their doorsteps.