The United States-based cryptocurrency mining operations are committed to increasing their hashing power with more hardware despite bitcoin’s three-month price slump (BTC).
The companies Marathon Digital Holdings and GEM Mining in the United States told Cointelegraph this week that each expects the size of their respective operations to grow through 2022 by at least doubling the number of machines in their facilities.
Marathon Digital vice president of corporate communications Charlie Schumacher told Cointelegraph in an interview that are advancing their plans to roll out 199,000 new machines to 2023 to secure what is “possibly the future of the world monetary system”.
The CEO of GEM Mining, John Warren, said via email that he “plans to have 32,000 miners online by the end of 2022”.
For Marathon, that would be more than a sixfold increase in size, while GEM’s capacity would double. if you go ahead with your plans.
The fact that miners are expanding their operations is somewhat of a surprise. Late last week, concerns arose over the efficiency of miners’ capital as it was reported that many were selling BTC to maintain their cash reserves.. Marathon Digital filed with the SEC to sell up to $750 million of its shares on February 13.
HoweverSchumacher clarified that the company keeps its options open and “is in a position to work better through the capital markets” while looking for the most efficient way from the economic point of view to grow.. He said that “just because you put in an offer to sell doesn’t necessarily mean it’s being sold. All we’re doing is increasing the option.” And he continued:
“We can’t control the price of BTC, but we can control how we react to the market. We believe we are in a position to act opportunistically.”
Warren shares optimism about growing the scale of his company. He told Cointelegraph that GEM has also not sold any BTC to date.
Its temperament may stem in part from the potential capital efficiency provided by recently proposed tax incentives in Illinois and Georgia. If passed, the Illinois bill would offer tax breaks for crypto mining data centers, while Georgia would reduce taxes on electricity used for crypto mining..
While Marathon’s strategy appears to be to secure more sources of revenue, GEM is looking for ways to reduce expenses. Warren said: “State tax incentives for mining are tremendously beneficial to companies like GEM Mining because of their effects on the cost of energy use.”.
“Energy is one of the most important inputs to mining operations, and tax breaks that exempt the sale or use of electricity can help reduce overhead and maintain cash flow.”
Both Schumacher and Warren acknowledged the potential for bitcoin price turbulence in the coming months. Schumacher declined to comment on whether we are entering a “crypto winter,” but made it clear that his company is focused on “decreasing risk.” and make sure we can pivot.”
Conversely, Warren commented that we are “most likely in a short-term bearish sentiment within the market”. He concluded by saying:
“I anticipate there will be continued investment in bitcoin and the crypto space in general, regardless of short-term volatility.”
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