CRYPTO NEWS

Marathon Digital Bucks The Bitcoin Miner Selling Trend Despite Energization Challenges

Kazakhstan Could Be Turning Its Back On Bitcoin Miners But Hashrates Are At An All-Time High

The crypto markets have been moving in a lackluster manner for several months. Different industry participants are bracing for a crypto winter, and Bitcoin miners notorious for holding on to their Bitcoin rewards are being forced to sell to keep the lights on.

However, Bitcoin mining firm Marathon Digital Holding maintains its diamond hands and refuses to sell.

Marathon Continues To Hold, Despite Energization Issues And A Poor Return In May

Marathon, for now, looks to be in it for the long haul. The company stated in a press release on Thursday that it was yet to sell any of its Bitcoin mined. As per the statement, the firm has not sold any of its Bitcoin mining rewards since October 2020, stating that at the beginning of June, it held roughly 9,941 BTC, including some Bitcoin it purchased at the beginning of last year.

It is worth noting that the firm, like several other Bitcoin miners, had stated that it might have to sell its holdings, but it appears it is still holding off on that possibility. Notably, Bitcoin mining profitability has dropped to mid-2020 lows.

Moreover, Marathon faced significant energization hiccups in May at its Hardin, Montana, facility in Texas. Electrical power to the facility from IT service company Compute North has been subject to several delays, with energization now expected in June. Consequently, the facility peaked at 53% of its full Bitcoin mining potential, considering the network’s hash rate in May. Despite these issues, the firm has continued to install new miners at the facility, bumping the number of miners to 19,000, representing approximately 1.9 EH/s.

“While these delays have been disappointing, our current understanding is that miners should start to come online this month. We continue to work closely and actively engage with Compute North to gain more insight into the energy provider’s timeline and to ensure that these delays, once resolved, will not impact our future deployments,” said Fred Thiel, CEO, and chairman of the firm.

Furthermore, Marathon noted that overall, as of the end of May, it had seen a 214% year-to-date increase in its Bitcoin production compared to the same period last year. According to the chart shared, the firm has mined about 1,826 Bitcoin this year.

Bitcoin Mining And The Energy Concerns In Texas

Bitcoin mining has always been controversial due to its high energy requirements and even more so in Texas, which has a unique power generation situation. Several people feared that extra strain on the grid brought on by the surge of Bitcoin miners trooping in due to the cheap and excess supply of energy could rupture the already fragile grid, which left several families in the cold during the pandemic. However, Bitcoin mining, it turns out, might be just what the grid in Texas needs.

The Texas grid requires flexible additional demand that can scale down when supply is optimal and up when supply is excess, which is the role that Bitcoin miners have decided to take up. Notably, they have received vocal support from Texas lawmakers like Senator Ted Cruz, who see the potential opportunity to fix the grid.

Why This JPMorgan Strategist Says The Worst Of The Crypto Bear Market Is Nearing Its End

A JPMorgan strategist has predicted that the worst element of the crypto winter for crypto assets, firms, and individual investors is close to an end. Deleveraging, a practice that has been the last resort for a number of troubled crypto firms, is predicted to have reached its terminus. JPMorgan’s Panigirtzoglou admits deleveraging has been the::Listen

Why This JPMorgan Strategist Says The Worst Of The Crypto Bear Market Is Nearing Its End

A JPMorgan strategist has predicted that the worst element of the crypto winter for crypto assets, firms, and individual investors is close to an end. Deleveraging, a practice that has been the last resort for a number of troubled crypto firms, is predicted to have reached its terminus.

JPMorgan’s Panigirtzoglou admits deleveraging has been the last resort for most investors

“Indicators like our Net Leverage metric suggest that deleveraging is already well advanced,” said Nikolaos Panigirtzoglou, strategist and Managing Director at JPMorgan. Panigirtzoglou acknowledged the surge in deleverage positions during the bear market.

He pointed out that part of the reason for this prediction is the fact that other crypto firms with “stronger balance sheets” are making it a business of theirs to assist in making sure the virus that has been spread by the bear market is contained.

The analyst was obviously making reference to Bahamian cryptocurrency derivatives exchange FTX’s intervention in the BlockFi predicament. The exchange aided BlockFi with a $250M emergency credit line to help the firm “navigate the market from a position of strength.”

Secondly, the forecast was also influenced by the fact that venture capital funding has not been majorly affected by the current market situations. Despite the Crypto Winter, funding has totaled around $5 billion between May and June.

Exposure to high leverage

Deleveraging occurs when a firm decides to reduce its leveraged positions by rapidly selling off its assets to cover debts. A number of crypto entities have resorted to reducing their leveraged positions owing to the sudden crypto crash and the fall of Terra’s UST stablecoin.

Recently, Three Arrows Capital, a Singapore-based crypto hedge fund, defaulted on a $670 million loan given to the firm by Voyager Digital. The crypto hedge fund has been having it rough navigating the market due to current overwhelming conditions. This has exposed it to liquidations.

Firms like Celsius Network are among the several companies that have had exposure to high leverages which seem to be backfiring due to current market realities. The next direction of the crypto market in the coming weeks remains to be seen, but it’s likely to determine how things will turn out for investors and crypto entities.

Marathon Digital Bucks The Bitcoin Miner Selling Trend Despite Energization Challenges

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