Marathon Digital keeps on mining despite BTC price slump

A close up of a horse Bitcoin

Marathon Digital keeps on mining despite BTC price slump

Earlier this month, Marathon said it has been accumulating or “hodling” its Bitcoin since October 2020. As of June 1, 2022, the firm held approximately 9,941 BTC.

Despite data showing that the Bitcoin (BTC) price may have fallen to the point of being unprofitable for the average miner, Marathon Digital Holdings says it will continue working to accumulate the leading crypto asset. 

Charlie Schumacher, vice president of corporate communications at Marathon Digital, told Cointelegraph on Wednesday that while the company “isn’t immune to the macro environment,” it is “fairly well insulated and well-positioned” to weather the current downturn, due to the low cost of operations and fixed pricing for power

Keep on mining

In fact, Schumacher made the point that as the price of Bitcoin declines, so does the number of people that can continue to mine profitably, which will force inefficient miners out and also decrease the difficulty of mining new blocks:

Markus Thielen, chief investment officer of digital asset manager IDEG Singapore, told Cointelegraph that there could be fallout from the mining industry as most had set their budgets in Q4 2021, before the change in market conditions:

“We actually expect that there will be some fall out as most of the miners appeared to set their 2022 budgets in early Q4 2021 and market conditions have materially changed.”

Thielen said tthey estimate that several of the smaller miners that do not have economies of scale will have a break-even rate of around $26,000 to $28,000. Bitcoin is currently priced at $20,085 at the time of writing.

Last week, a report by S3 Partners identified Marathon Digital Holdings as being one of the United States-listed companies with the most short-seller interest alongside MicroStrategy and Coinbase.

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