Despite the Bitcoin price continuously falling and the market becoming increasingly chaotic, several major miners remain unfazed and insist their operations will not be affected. Some even see it as an opportunity to gain market share as smaller competitors collapse.
Bitcoin price has been falling steadily year-to-date, hitting its lowest level since December 2020. However, miners have not been discouraged by that immense pressure. Some are even excited despite Bitcoin’s downtrend continuing through 2022.
Each of the three different mining operations – two large public companies and one private mining company – shared interesting feelings about the prospect of a bear market. They believe it will have little or no impact on their business plans.
Bitcoin miner Marathon Digital Holdings (MARA) says that its “asset light strategy” will help it escape nearly all of the effects of the bear market. Vice President of Corporate Communications Charlie Schumacher said that they maintained a cost base of around $6,200 per BTC mined in Q1 by “outsourcing our operations and maintaining the intellectual power in the company“.
According to BitcoinTreasaries, Marathon is the third largest Bitcoin holder among public companies. It is capable of generating 3.9 exahashes (EH/s) hashpower. MARA is down 15.42% to trade at $9.97 today and is down 92.6% from its December 2014 high of $134.72.
Schumacher added that the capitulation of other miners due to capital constraints during the bear market creates an opportunity for a larger company like Marathon, to be able to take advantage of the lower mining difficulty from reduced hashpower and compete on the blockchain. Bitcoin network.
“As the hashrate decreases, the mining difficulty will decrease, reducing energy costs for miners that are still active. Therefore, the remaining miners can benefit from earning more Bitcoins.”
The CEO Jason Les of Riot Blockchain (RIOT), another major mining company that holds the eighth most BTC among public companies, is also indifferent about the current and future Bitcoin market volatility. Riot Blockchain controls 3.9 EH/s hash power as of March 4 but does not disclose the cost per BTC mined. The RIOT price is down 9.16% and is trading at $6.83. It is down 90.5% from its February 2021 high of $71.33.
Like Marathon and Redivider, Les pointed to a “strong balance sheet with no long-term debt” as strengths that Riot Blockchain can rely on from a corporate perspective. He added that “changes in Bitcoin market conditions do not affect our miner deployment plans, so we continue to increase our hash rate monthly.”
“Riot’s miner implementation plans are unaffected by Bitcoin volatility, we are focused on building a sustainable business that operates under Bitcoin market conditions.”
Redividers are also not troubled by the prospect of a longer recession, according to CEO Tom Frazier. Redivider is a privately run data center provider for Bitcoin mining operations specializing in Opportunity Zones designed to benefit workers in disadvantaged regions of the United States. Ky.
At the core of Redider’s business is managing data centers that rent out Bitcoin hashpower to miners for a fee. Frazier said on May 11 that if its data centers are unoccupied at a particular time, Redivider can maintain a revenue stream for all of its facilities at any given time by how to assume hashpower and block rewards for themselves.
Although he did not disclose the cost per Bitcoin mined nor the level of activity, he assured that “our BTC production price will not be affected”.
“The correction in the market is happening because BTC is very volatile, which is consistent with any other volatile asset class. That instability will not hinder our strategy. These moments present opportunities.”
According to CoinGecko data, considering the current chaotic situation in the crypto market following the collapse of the Terra project (LUNA) and Bitcoin is currently trading at $28,672, the lowest level since the day. January 1, 2021, it will soon be known whether miners can seize this immediate opportunity.