The enormous anxiety in the Bitcoin market has not affected the miners. It may even welcome a decline because it allows them to earn more hash power.
Despite progressively decreasing Bitcoin prices and today’s market upheaval, some of the world’s largest mining businesses remain unmoved, claiming that negative price fluctuation would have no impact on their operations. Some even see it as a chance to acquire market share when smaller competitors go out of business.
Bitcoin Miners Unthreatened
Bitcoin (BTC) prices had been steadily declining throughout the year until the last 24 hours. This when they surged to their lowest level since December 2020. Despite the enormous strain, it has not discouraged the miners. If Bitcoin’s slump continues into 2022, some people may get even more enthusiastic about mining.
Each of the three mining operations analysts contacted expressed apprehension about the possibility of a bear market. The Bitcoin miners made up the mining operations with two huge public firms and one private mining company. They believe it will have little or no impact on their plans.
Marathon Digital Holdings (MARA) is a Bitcoin miner. And it claims that its “asset-light strategy” will protect it from nearly all bad market repercussions. According to Charlie Schumacher, VP of Corporate Communications, the company maintained a cost basis of roughly $6,200 per BTC mined in Q1. They did so by outsourcing the muscle of our operations while preserving the intellectual power within the firm.
According to Bitcoin Treasuries, Marathon is the third-largest Bitcoin (BTC) holding among public companies. It can generate 3.9 exahashes per second (EH/s) of hash power. MARA is down 15.42 percent in after-hours trading, trading at $9.97. It’s down 92.6 percent from its peak of $134.72 in December 2014.
Taking Advantage of Mining Difficulties
The exit of other miners owing to capital restrictions during bad markets, according to Schumacher, presents an opportunity for larger operations like Marathon’s. It is to take advantage of decreasing mining difficulty as hashpower and competition on the Bitcoin network decreases.
A downward difficulty adjustment occurs as the hash rate lowers, lowering the energy cost for miners who continue to hash. Those that remain can so benefit from the possibility of earning more Bitcoin.
Riot Blockchain Still Optimistic About Bitcoin
Riot Blockchain (RIOT) CEO Jason Les, another significant mining company, also responded to some concerns. According to Bitcoin Treasuries, it has the seventh most BTC among public corporations. As of March 4, it had 3.9 EH/s of hash power but did not provide its cost per coin produced.
RIOT is 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 conditions have no bearing on our miner deployment plans, he continued. Thus, Riot continue to expand our hash rate on a monthly basis.
Bitcoin market volatility does not affect Riot’s miner deployment plans. They’re focused on developing a long-term business that miners can operate in a variety of Bitcoin market circumstances.
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