Bitcoin miners are unaffected by market fluctuations
Bitcoin miners are unaffected by market fluctuations, Despite the continuous decrease in Bitcoin values and the present market upheaval, several of the largest mining businesses remain unfazed, claiming that negative price volatility 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 (BTC) prices had been steadily declining all year until the previous 24 hours, when they surged to new 12-month lows. Despite the great strain, the miners have remained unfazed. If Bitcoin’s downward trend continues until 2022, some people may become even more interested in mining.
Miners ‘Unaffected by Volatility’ in the Bitcoin Market
Each of the three mining operations contacted by Cointelegraph – two huge public firms and a private mining company – expressed icy feelings about the likelihood of a bear market. They feel it will have a minor or non-existent impact on their company ambitions.
Marathon Digital Holdings (MARA), a bitcoin miner, claims that its “asset-light strategy” will protect them from practically all bad market repercussions. Vice President of Corporate Communications Charlie Schumacher told Cointelegraph that by “outsourcing the muscle of our operations and maintaining the brainpower in-house,” he was able to preserve a cost base of roughly $6,200 per BTC produced in Q1.
According to BitcoinTreasuries, Marathon is the third largest Bitcoin (BTC) holder among public corporations. It can generate 3.9 exahashes per second (EH/s) of hash power. At the conclusion of business on April 11, MARA was down 15.42 percent, trading at $9.97. It’s down 92.6 percent from its peak of $134.72 in December 2014.
Evaluation of Bitcoin Miners’ market volatility
The withdrawal of other miners owing to capital restrictions during downturn markets, according to Schumacher, presents an opening for larger operations like Marathon, which may take advantage of decreasing mining difficulty as hash power and competition in mining decline. the Bitcoin system.
The CEO of Riot Blockchain (RIOT), another significant mining outfit, also responded to Cointelegraph. According to Bitcoin Treasuries, it is presently the sixth largest public corporation in terms of BTC. As of March 4, it has 3.9 EH/s of hash power, but did not provide its cost per coin produced.
At publication time, RIOT was trading at $6.83, down 9.16 percent. It’s down 90.5 percent from its February 2021 high of $71.33.
Les was similarly unconcerned about the Bitcoin market’s current and future volatility. Les, like Marathon and Redivider, cited his company’s “solid financial sheet, no long-term debt” as business strengths. “Changes in Bitcoin market circumstances have no bearing on our miner deployment plans,” he continued, “thus we continue to grow our hash rate on a monthly basis.”
Riot’s miner deployment plans are not affected by the volatility of Bitcoin
Tom Frazier, CEO of Redivider, is unconcerned about the possibility of another extended fall. Redivider is a Bitcoin mining data center provider focusing on Opportunity Zones, which aid employees in economically depressed areas of the United States.
Redivider’s year-and-a-half-old company revolves around maintaining data centers with Bitcoin hashing power that mining firms may rent out for a charge. Redivider can maintain a cash stream for all of its facilities at any moment by taking over hashing power and block rewards, according to Frazier, who told Cointelegraph on a call on May 11 that if its data centers are not leased at a particular time.