Miners ‘are not affected by volatility’ in the Bitcoin market

Despite the steady decline in Bitcoin prices and the turmoil in the markets today, some of the biggest mining companies are unfazed and insist that their operations will not be affected by the negative price volatility.

Some even see it as an opportunity to gain market share as smaller competitors crumble.

Bitcoin (BTC) prices fell steadily all year until the past 24 hours, when the crash accelerated to the lowest point since December 2020. However, miners were undeterred by this enormous pressure. Some might even have more mining fervor if Bitcoin’s downward trend continues into 2022.

Each of the three different mining operations – two large public companies and one private mining company – that Cointelegraph reached out to share fresh emotions about the prospect of a bear market. They believe it will have little or no effect on their business plans.

Bitcoin miner Marathon Digital Holdings (MARA) said its “asset-light strategy” would keep it immune to almost all the effects of a bear market. VP of Corporate Communications Charlie Schumacher told Cointelegraph that he was maintaining a cost base of around $6,200 per BTC mined in the first quarter by “outsourcing the muscle of our operations and retaining power. intellectual within the company”.

Marathon is the third largest Bitcoin (BTC) holder among public companies according to BitcoinTreasuries. It has the ability to generate 3.9 exahashes (EH/s) of hashing power. MARA is down 15.42% and trading at $9.97 after hours trading. It is down 92.6% from its peak of $134.72 in December 2014.

Schumacher added that the exit of other miners due to capital constraints during bear markets creates an opportunity for larger operations like Marathon’s, which can take advantage of lower mining difficulty due to a decrease in hashing power and competition on the Bitcoin network.

“As the hash rate decreases, there is a downward difficulty adjustment, which decreases the energy expenditure of miners who continue to hash. Those who stay up can therefore benefit by potentially earning more of Bitcoin.

Cointelegraph also received responses from Riot Blockchain (RIOT) CEO Jason Les, another major mining company. It currently holds the eighth largest number of BTC among public companies according to Bitcoin Treasuries. It controls 3.9 EH/s of hash power as of March 4 but has not disclosed its cost per coin mined.

RIOT is down 9.16% and trading at $6.83 after hours trading. It is down 90.5% from its February 2021 high of $71.33.

Les also appeared nonchalant about the current and future volatility of the Bitcoin market. Like Marathon and Redivider, Les pointed to her company’s “strong balance sheet with no long-term debt” as key assets she can rely on from a business perspective. He added, “changes in Bitcoin market conditions do not impact our miner deployment plans, so we continue to increase our hash rate monthly.”

“Riot’s miner deployment plans are unaffected by Bitcoin’s volatility, we are focused on building a sustainable business that operates under Bitcoin market conditions.”

Redivider CEO Tom Frazier is also unfazed by the prospect of another prolonged downturn. Redivider is a private data center provider for Bitcoin mining operations specializing in Opportunity Zones designed to benefit workers in disadvantaged areas of the United States.

Redivider’s year-and-a-half-old core business is running data centers whose Bitcoin hashing power can be rented by mining companies for a fee. Frazier told Cointelegraph in a May 11 call that while its data centers don’t have tenants at any given time, Redivider can maintain a revenue stream for all of its facilities at all times by assuming hashing power. and locking in rewards for themselves.

He did not reveal Redivider’s base price per bitcoin mined or the scale of his operation, but he assured that “our BTC production price will not be affected.”

Frazier said bitcoin market downturns “have little impact on what we do because of our 10-year plan.”

“Corrections in the market happen because BTC is highly volatile, which is consistent with any other volatile asset class. This volatility will not hinder our strategy. These moments present opportunities.

Related: Bitcoin Battles to Hold $29,000 as Regulatory Scare and Terra UST Implosion Hits Crypto Hard

Given the current turmoil in the crypto markets following the collapse of Project Terra (LUNA) and Bitcoin which is currently trading at $28,931, its lowest level since January 1, 2021, according to data from CoinGecko, it may quickly become apparent whether miners can pounce on the opportunity on their doorstep as they claim.