Traders are afraid that Bitcoin miners selling their reserves could trigger a “death spiral” in BTC price, but ArthurMining and noshitcoins say many operators are profitable despite the strength of the current crypto winter.
Arthur Mining's current capacity is 25 megawatts and the company focuses on environmentally friendly energy sources. At first, one could dismiss their numbers as listed companies like Marathon Digital Holdings have 300 MW plants, but these rely on the traditional grid energy — even if a portion of the power originates from hydro-electric plants.
One of the strong points of the Bitcoin network is that it prioritizes efficiency, meaning, the labor intensive production process will always seek out the lowest operational costs and shift toward that. ASIC mining equipment is mobile, but more importantly, there is optionality for other energy sources. For example, these machines can be installed in containers, shipped to offshore oil and gas structures, and work with oscillating power sources.
But not every mining company has access to traditional long-term bank financing. Thus, those firms created a riskier debt structure by offering their miners and infrastructure as collateral. As Bitcoin price plunged, so did the mining equipment prices, and in turn, worsening their financing conditions when they needed the most.“For the s17s [ASIC miner], at $0.07 per kilowatt, BTC needs to be at around $18,000….
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