White Rock Management CEO Andy Long believes that bear markets “provide excellent opportunities” for expansion through M&A in the crypto mining sector.
Speaking to Cryptooshala, the CEO of the crypto mining company noted that companies that manage their balance sheets effectively are in “great shape” during this bear market and will continue to do well even if there is more volatility ahead.
“The bear market created problems for miners who were leveraged at the top of the market, however this sector has been here before and well-capitalized and efficient miners will manage,” he said.
Long suggested that the current bearish trend would present such companies with key M&A opportunities as they prove to investors that they can survive in extreme market conditions:
“Bear markets do present great opportunities, so we expect to see M&A and consolidation in the mining sector involving both public and private players to realize economies of scale and consolidate additional operations.”
“We will also see network growth accelerate again, but not to the level predicted at the end of the year, but we will probably grow by at least 20% by the end of the year,” he added.
Long also noted that the Texas mining sector has done well despite the ongoing heat wave. He noted the sector’s effective coordination with the Electricity Reliability Council of Texas (ERCOT) to address power supply issues over the past couple of months:
“There is a lot of activity in Texas and the mining sector is in great shape. Network-connected miners are working with ERCOT to ensure demand is responsive during challenging weather, and we are seeing further growth across the state.”
White Rock is a Swiss-based cryptocurrency mining company that claims to have around 24 megawatts of installed capacity.
In June, it announced plans to expand its US operations, starting in Texas. As part of this move, White Rock has partnered with Natural Gas Onsite Neutralization (NGON) to operate its facility, which uses “environmentally friendly” methods to mine Bitcoin (BTC).
As previously reported on July 11, mining companies such as Riot Blockchain and Core Scientific shut down some of their mining operations in Texas in June to ease the strain on the power grid after temperatures rose by more than 100 degrees.
Both have been active in easing the pressure on Texas’s power supply, but another contributing factor has been the surge in energy prices amid the heatwave.
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As a result of the move, the companies suffered from declining mining performance. However, with the price of BTC up 14.7% over the past month and temperatures looking set to drop slightly to around the 90-degree mark, there is a sense that miners will turn their machines back on as the profitability of BTC mining drops. be too good to ignore.
“The rise in the price of bitcoin has boosted the profitability of miners, and some miners who were taken offline in June and July likely got their machines back on,” said Jaran Mellerud, a crypto mining analyst at research firm Arcane Crypto, in a report. . interview with Bloomberg on 5 August.
At the time of writing, the price of Bitcoin is $23,088.
Credit : cointelegraph.com