Head of Marathon Digital: Even with a bearish trend, miners feel calm

Article Reading Time:
2 minutes.

The management of the mining company Marathon Digital believes that thanks to the margin, Bitcoin miners do not incur losses in a falling market.

Marathon CEO Fred Thiel said on The Scoop podcast that the current state of the cryptocurrency market has not greatly affected the benefits of Bitcoin mining.

“If we take our company as an example, thenThe cost of mining 1 BTC is about $6,250, which provides enough margin to maintain production and development, regardless of the current market situation,” says Thiel.

According to him, the cost of cryptocurrencies is not the only thing that worries miners:

“In fact, we are also concerned about the cost of electricity and the ability to get government approval to set up production.”

The businessman explained that the price of Bitcoin will always fluctuate; the cost of energy for miners is usually predictable, since it is purchased under long-term contracts.

“Just as the airline industry willhedge your fuel purchases by purchasing fuel futures, when we enter into a hosting agreement we lock in a profit. Thus, the cost of energy hosting and services is fixed at just over $0.04 per kWh for five years,” Thiel said.

The head of Marathon Digital believes thatThe weak point of all mining companies is obtaining a license from local authorities to use equipment for mining cryptocurrencies. According to him, waiting for permission sometimes takes long periods of time and downtime places a heavy burden on the budget.

</p>

Thiel's speech appears to be an attempt to reassure investors. In May, the American mining company Marathon Digital reported losses of $13 million.