Although the data suggests that the price of Bitcoin (BTC) may have fallen to a level that is not conducive to the average miner, Marathon Digital Holdings said it will continue to work to accumulate top cryptocurrency assets.
Charlie Schumacher, Vice President of Corporate Communications at Marathon Digital told Cointelegraph on June 15 that although the company is “not immune to the macro environment,” it is “fairly well insulated and well positioned” to weather the current downturn, due to low operating costs and fixed pricing for energy.
“For reference, in Q1 2022, our cost to produce a Bitcoin was about $6,200.We also set a fixed electricity price, so we are not subject to the change of the energy market.”
Schumacher added that the company has been more focused on producing Bitcoin and accumulating crypto assets, in the belief that the asset will continue to rise in price in the long run.
“Because we report our finances in DOLLARS, the price of Bitcoin will always have a critical impact on our financial results.To objectively assess our progress internally, we try to focus more on our Bitcoin production.It’s important to note that Bitcoin Mining is a zero-sum game,” he added.
“It’s true that Bitcoin is worth less in dollars at the time it’s mined, but if you believe in bitcoin’s ability to appreciate in the long run, earning more BTC is never a bad thing.”
In a June 9 statement, Marathon said it had accumulated or “sold” its Bitcoins and had not sold any of them since October 2020. As of June 1, 2022, Marathon held approximately 9,941 BTC, worth approximately $200 million at current prices.
— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) June 9, 2022
Continue to exploit
In fact, Schumacher has made the point that as the price of Bitcoin falls, then the number of people who can continue to mine profitably, which will force underperforming miners out and also reduce the difficulty of mining new blocks.
“As the difficulty rate goes down, those who can continue to mine will have the opportunity to earn more bitcoin.”
Bitcoin’s current hash rate, also known as bitcoin’s processing power, has fallen from an all-time high (ATH) of 231,428 EH/s on June 12 to 205,163 EH/s at the time of writing.
A more pronounced effect occurred a year ago after China cracked down on cryptocurrency mining facilities, from a market peak of 180,666 in May 2021 to 84.79 in July 2021.
The price meets the average mining cost
Last week, cryptocurrency market data and analytics platform CryptoRank emphasized that on June 16, the price of BTC is on par with the average mining cost, noting that for some, mining may not even be profitable at the moment.
Markus Thielen, chief investment officer of digital asset management firm IDEG Singapore, told Cointelegraph that there could be a decline from the mining industry as most have set their budgets in the fourth quarter of 2021, before market conditions change.
“We really expect that there will be some setbacks as most miners seem to be putting their 2022 budgets at the start of the fourth quarter of 2021 and market conditions have changed dramatically.”
Thielen said it estimates that some smaller miners without economic size will have breakeven rates of between $26,000 and $28,000.Bitcoin is currently priced at $20,085 at the time of writing.
See also: https://ecoinomic.io/tin-tuc/dogecoin-tang-vot-bat-chap-thi-truong-tien-dien-tu-bien-dong.html