Data shows that mining bitcoin (BTC) is no longer profitable for some miners due to the sharp drop in price. Nevertheless, Marathon Digital Holdings indicates that they want to continue mining and collecting cryptocurrencies.
Charlie Schumacher, vice president of Corporate Communications at Marathon Digital, has indicated that of course the company cannot withstand any changes in the macroeconomic picture, but that they can take a blow and are well positioned for a possible downward market because they can mine very cheaply.
“For reference, in the first quarter of 2022, our cost to produce a Bitcoin was about $6,200. We also have fixed prices for electricity, so we are not subject to changes in the energy markets. Admittedly, bitcoin is worth less in dollar terms at the time it is mined, but if you believe in bitcoin’s ability to rise in the long run, it never hurts to earn more BTC.” Indicated Schumacher
HODLen and bitcoin keep collecting
Schumacher himself also indicated that a falling BTC price may even have benefits for the company. The moment BTC falls, the number of miners that can mine profitably also falls, causing the miners that are not profitable to stop. This also ensures that the difficulty level will be lower.
“When the difficulty decreases, those who can continue mining will have the opportunity to earn more bitcoin.” said Schumacher
Despite everything, Marathon Digital Holdings still has indicated to hold on to all of her BTC that she has collected over the past few years. They have been mining bitcoin since October 2020 and have no intention of stopping. As of June 1, 2022, the company owned nearly 10,000 BTC, which is worth about $200 million at the time of writing.