Miners ‘Immune to Volatility’ in Bitcoin Markets

Despite the steady decline in bitcoin prices and today’s volatile markets, some of the largest mining companies are not worried, insisting that their operations will not be affected by negative price swings.

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

Bitcoin (bitcoin) prices have fallen steadily throughout the year over the past 24 hours, when the crash accelerated to a 12-month low. However, the miners were undeterred under the enormous pressure. Some may even be more enthusiastic about mining if Bitcoin’s downtrend continues into 2022.

Cointelegraph reached out to three different mining companies — two large public companies and one privately held miner — to share sober sentiments about the prospect of a bear market. They see it as having little impact on their business plans.

Bitcoin miner Marathon Digital Holdings (MARA) says its “asset-light strategy” will insulate it from almost all impacts of a bear market. Charlie Schumacher, vice president of corporate communications, told Cointelegraph that it maintained its cost base at around $6,200 per BTC mined in the first quarter by “outsourcing the power of our business and keeping the intelligence within the company.”

Marathon is the third largest holder Bitcoin (bitcoin) among listed companies according to BitcoinTreasuries.it has capacity Generates 3.9 exahashes (EH/s) of hashrate. MARA fell 15.42 percent to $9.97 in after-hours trading. It is down 92.6% from its December 2014 high of $134.72.

Schumacher added that the withdrawal of other miners due to funding constraints during the bear market creates an opportunity for large players like Marathon to take advantage of the drop in computing power and competition on the Bitcoin network to reduce mining difficulty.

“As the hash rate decreases, the difficulty adjusts downward, which reduces the energy expenditure of miners who are still hashing. Therefore, those who remain can benefit by potentially earning more Bitcoin. “

Cointelegraph also received a reply from Jason Les, CEO of Riot Blockchain (RIOT), another large mining company. It currently holds the eighth-largest amount of bitcoin among publicly traded companies, according to Bitcoin Treasuries. It controlled 3.9 EH/s of hashrate as of March 4, but did not disclose its per-coin mining cost.

RIOT fell 9.16 percent to $6.83 in after-hours trading. It is down 90.5% from its February 2021 high of $71.33.

Les also seems indifferent to current and future bitcoin market volatility. Like Marathon and Redider, Les points to his company’s “strong balance sheet with no long-term debt” as a key advantage it can rely on from a business perspective. He added, “Changes in Bitcoin market conditions will not affect our miner deployment plans, so we will continue to increase the hash rate on a monthly basis.”

“Riot’s miner deployment plan is not affected by Bitcoin volatility, we are focused on building a sustainable business that operates under Bitcoin market conditions.”

Reddivider CEO Tom Frazier also isn’t worried about the prospect of a further prolonged downturn. Redivider is a privately run data center provider for bitcoin mining operations Focus on Opportunity Zones Aims to Benefit Workers in Poor Areas of America

Central to Redivider’s 1.5-year-old business is managing data centers, whose bitcoin hashing power can be rented by mining companies for a fee. Frazier told Cointelegraph in a May 11 conference call that if its data centers are without tenants at a particular time, Redivider can maintain a revenue stream for all of its facilities at any given time by taking on hash power and block rewards for itself.

He did not disclose what the benchmark price per bitcoin mined by Redider was or the size of its operations, but assured that “our BTC production prices will not be affected.”

Fraser said the downturn in the bitcoin market “has little impact on our 10-year plan.”

“The market is undergoing a correction because BTC is very volatile, which is consistent with any other volatile asset class. This volatility does not hinder our strategy. These moments present opportunities.”

related: Bitcoin struggles to hold $29,000 as fears of regulation and Terra’s UST implosion hit cryptocurrencies hard

Considering the current turmoil in the cryptocurrency market Tyra’s collapse (Luna) project and Bitcoin are currently trading at $28,931, the lowest level since January 1, 2021, according to CoinGecko datawhether miners can seize the opportunity on their doorstep, as they claim, may soon become apparent.