US crypto miners are committed to increasing their hash power with more hardware despite bitcoins (BTC) Three months of contraction.
US companies Marathon Digital Holdings and GEM Mining told Cointelegraph this week that they expect to grow the size of their own operations through 2022 by at least doubling the number of machines in their facilities.
Charlie Schumacher, Marathon Digital’s vice president of corporate communications, told Cointelegraph in an interview that it is pressing ahead with plans to deploy 199,000 new machines through 2023 To secure what could be considered “the future of the global monetary system”.
John Warren, CEO of GEM Mining, said via email that he “plans to have 32,000 miners online by the end of 2022.”
For Marathon, that would be more than a six times increase in volume while GEM’s capacity would double if it went ahead with its plans.
The fact that miners are expanding their operations comes as a bit of a surprise. Late last week, concerns were raised about the capital efficiency of miners as it was reported Lots of people were selling bitcoin In order to maintain cash reserves. Marathon Digital filed with the US Securities and Exchange Commission (SEC) to sell up to $750 million of its stock on February 13.
However, Schumacher made it clear that the company is keeping its options open and “in a position to do better through the capital markets” as it searches for the most economically efficient way to achieve growth. He said, “Signing off the shelf doesn’t necessarily mean they’re selling. Everything we do is about increasing electives.” he completed
“We cannot control the price of bitcoin, but we can control how we interact with the market. We think we are in a position to act opportunistically.”
Warren shares optimism about increasing the size of his company. He told Cointelegraph that GEM has also not sold any BTC yet.
Its temperament can be derived in part from the potential capital efficiency provided by the newly proposed tax incentives in Illinois And the Georgia. If passed, the Illinois bill would provide tax breaks for crypto-mining data centers, while Georgia would lower taxes on electricity used for crypto-mining.
While the Marathon strategy appears to secure greater sources of income, GEM is looking at ways to reduce expenses. Warren said, “State tax incentives for mining are very beneficial to companies like GEM Mining due to their impact on the cost of energy use.”
“Energy is one of the most important inputs to mining operations, and tax credits that exempt the sale or use of electricity can help reduce overhead costs and preserve cash flow.”
Both Schumacher and Warren acknowledged the possibility of Bitcoin price turmoil over the coming months. Schumacher did not comment on whether we were entering a “crypto winter”, but made clear that his company was focused on “reducing risk and making sure we can pivot”.
Conversely, Warren commented that “we are likely to see a short-term downtrend within the market”. And he concluded by saying,
“I expect there will be continued investment in bitcoin and the larger crypto space, regardless of short-term fluctuations.”
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