While times are definitely hard for Bitcoin miners, Marathon Digital Holdings said that it will not stop mining the cryptocurrency any time soon.
Charlie Schumacher — the Vice President of Corporation Communication at Marathon Digital — stated that the company is not completely unaffected by the macro environment. However, it is still well-equipped enough to brave through choppy waters due to low operation cost and fixed power pricing.
“For reference, in Q1 2022, our cost to produce a Bitcoin was approximately $6,200. We also have fixed pricing for power, so we are not subject to changes in the energy markets,” said Schumacher. “Because we report our financials in USD, the price of Bitcoin will always have a material impact on our financial results. To objectively evaluate our progress internally, we try to focus more on our Bitcoin production. It’s important to bear in mind that Bitcoin mining is a zero-sum game.”
Schumacher admitted that Bitcoin is “worth less in terms of dollars at the time it is mined.” That being said, he remarked that it’s not a bad idea to earn more Bitcoin if you believe that the crypto asset will appreciate in the long-run.
Schumacher also stated that the number of people who are able to mine profitably will drop in tandem with the price of Bitcoin, resulting in more inefficient miners being forced out and decreasing the difficulty of mining new blocks.
Last week, crypto market analyst CryptoRank said that Bitcoin mining may be unprofitable for some as the price of Bitcoin was on the same level as the average mining cost.
In June 9, Marathon revealed that they have been hoarding Bitcoin and not sold any since October 2020. It is known that the company held around 9,941 BTC as of June 1, 2022.
