Andy Long, CEO of White Rock Management, believes bear markets offer “excellent opportunities” for expansion through mergers and acquisitions in the crypto mining sector.
Speaking to TBEN, the crypto mining company’s CEO noted that companies that have managed their balance sheets effectively are in “excellent shape” during this bear market and will continue to do well even as more volatility comes.
“The bear market has presented challenges for the leveraged miners at the top of the market, but the industry has been here before and well capitalized and efficient miners will do just fine,” he said.
Long suggested that the current bear trend will present significant M&A opportunities for such companies, as they will have proven to investors that they can survive extreme market conditions:
“Bear markets actually offer excellent opportunities, so we expect mergers and acquisitions and consolidation activities in the mining sector involving both public and private players – to realize economies of scale and combine complementary activities.”
“We will also see network growth pick up again, not to the level predicted at the end of the year, but we will probably be at least 20% higher by the end of the year,” he added.
Long also noted that the Texas mining sector has been doing well despite the ongoing heat wave. He noted the industry’s effective coordination with the Electric Reliability Council of Texas (ERCOT) to resolve energy supply issues in recent months:
“There is a lot of activity in Texas and the mining industry is in great shape. Grid-connected miners are partnering with ERCOT to provide demand response during challenging weather, and we’re seeing continued growth across the state. ”
White Rock is a crypto mining company based in Switzerland that claims to have installed approximately 24 MegaWatts of installation capacity.
In June, it announced plans to expand its operations into the US, starting with Texas. As part of the move, White Rock partnered with Natural Gas Onsite Neutralization (NGON) to operate out of its facility that 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 parts of their Texas mining operations in June to ease the strain on the power grid after temperatures soared well above 100 degrees.
Both f were proactive in easing pressure on Texas energy supplies, but another factor was that energy prices had spiked during the heat wave.
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As a result of the move, the companies suffered from reduced mining productivity. With the price of BTC up 14.7% in the past month and temperatures set to drop slightly to around 90 degrees, there is a feeling that miners will turn their machines back on as the profitability of BTC mining will increase. be too good to ignore.
“Bitcoin price appreciation has led to greater profitability for miners, and some miners who were pushed offline in June and July may have reconnected their machines,” noted Jaran Mellerud, a crypto mining analyst at a research firm Arcane Crypto. interview with Bloomberg on Aug. 5.
The price of Bitcoin stands at $23,088 at the time of writing.