Following reports that Bitcoin’s value may have dropped to the point of being unprofitable for the average miner, Marathon Digital Holdings says it can continue working to build up the primary crypto asset. In the first quarter of 2022, the value to provide a Bitcoin was approximately $6,200. They established a fixed price for energy to avoid the effects of the changes in the power market.
Marathon Digital’s Vice President for Company Communications, Charlie Schumacher, said that the company had devoted more resources to the production of Bitcoin. Also, the development of the crypto asset, hoping the commodity will gain value.
The value of Bitcoin will always substantially impact their monetary outcomes because of the report on their financials in USD. On their own, they are trying to put more effort into producing Bitcoins. There are no winners or losers in Bitcoin mining, he said.
If you believe in Bitcoin’s long-term value, earning more BTC isn’t bad, although its current value is lower than it was after mining it. Marathon said on June 9 that it has been hoarding its Bitcoin since October 2020. Also, it has offered none since then. Marathon has approximately $9,941 BTC as of June 1, 2022, valued at around $200 million at today’s prices.
Marathon Digital continues the mining process
In actuality, Schumacher intended that when Bitcoin’s value declined, the number of people who could successfully mine decreased. It is good because it will force out inefficient miners and reduce the mining of new blocks.
Schumacher said that when the transaction fee decreases, individuals who can continue mining could make more bitcoin. Since its all-time high (ATH) of 231.428 EH/s on June 12, Bitcoin’s current hash cost has dropped to 205.163 EH/s as of this writing.
After China’s crackdown on cryptocurrency mining facilities a year ago, which moved from a hash rate market top of 180.666 in May 2021 to 84.79 in July 2021, the impact was more pronounced.
The value of mining meets the standard value
Even if Bitcoin’s worth was equal to the average mining value on June 16, many analysts believe that for some, mining could be unprofitable at this point because of the current market conditions.
According to Markus Thielen, the chief funding officer of digital asset manager IDEG Singapore the recent market volatility might affect mining companies. Some fallout is coming, as many mines set their 2022 budgets in the early fall of 2021, and market conditions have significantly changed.
Thielen said that some smaller miners that don’t require economies of scale might have a break-even cost of around $26,000 to $28,000. At the time of this writing, the price of one bitcoin is $20,085.
Stock market short-sellers rake in a 126% profit
Coinbase, Marathon Digital, and MicroStrategy were the three crypto equities with the short-sellers interest in a recent study by S3 Partners.
According to fresh data, short-sellers profited 126 percent in 2022 on the shorting of crypto-related companies. It’s a figure that dwarfed any other sector of the US stock market this year.
Video presenting S3 Partners’ recent analysis, which revealed that US equity short-sellers had gained over 30 percent this year, came out on Thursday last week. The short-selling of autos, software and services, media and entertainment, and more contributed to some of these profits. However, none of this compared to the 126 percent increase in short-selling earnings in 2022 for crypto stocks.
Coinbase Global, Marathon Digital Holdings, and MicroStrategy are the crypto equities with the highest short-selling interest.
Source: https://www.cryptopolitan.com/marathon-digital-continues-to-mine/