Marathon announced this month that it had been stockpiling, or “hodling,” Bitcoin since October 2020. The corporation had roughly 9,941 BTC on June 1, 2022.
Although evidence suggests that the value of Bitcoin (BTC) has dropped to the point where it is no longer economically viable for the average miner, Marathon Digital Holdings claims it will continue to pile up the main digital resource.
Marathon Digital’s VP of Marketing Communications, Charlie Schumacher, informed Cointelegraph on June 15 that, whereas the business “isn’t invulnerable to external factors,” it is “equitably well shielded and very well” to tempt the current decline thanks to low operating costs and constant power sales prices.
“For comparison, the cost of producing a Bitcoin in Q1 2022 was around $6,200. We also have constant power rates, so we’re not affected by market fluctuations. “
According to Schumacher, the company is focusing more on Bitcoin’s rise in concentration, with the conviction that the cryptocurrency will remain to grow in the long term.
“Because we disclose our financial statements in US dollars, the bitcoin price will always have a massive effect on our financial statements.” We intend to focus more on our Bitcoin output to properly assess our performance inside. It’s crucial to remember that Mining process is a zero-sum game,” he continued.
“While Bitcoin is valued less in dollars at the moment it is produced, acquiring more BTC is never a negative thing if you trust in Bitcoin’s long-term ability to enjoy.”
Marathon issued a statement saying on June 9 that it has been gathering or “hodling” Bitcoin since October 2020 and has not traded any. Marathon had approximately 9,941 BTC on June 1, 2022, which is valued at around $200 million at current prices.
Continue to mine
Indeed, as the bitcoin price falls, so does the number of people who can afford to mine economically, forcing ineffective miners out and lowering the complexity of mining the genesis block, according to Schumacher.
“Those who can keep mining when the challenge rate drops have the possibility to make more bitcoins.”
Bitcoin’s average computational power, or processing capabilities, has dropped from an all-time peak of 231.428 EH/s on June 12 to 205.163 EH/s at the time of this writing.
After China’s assault on bitcoin mining areas a year ago, the transaction rate dropped from 180.666 in May 2021 to 84.79 in July 2021, resulting in a more discernible benefit.
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