Bitcoin miners rethink business strategies to survive long-term
The Bitcoin mining industry continues to face a challenging year as the price of Bitcoin (BTC) hovers below $20,000, coupled with rising energy costs in North America and Europe. Regulators have also recently started clamping down on crypto mining, as a recent report from the Bitcoin Mining Council (BMC) found that Bitcoin has seen a 41% increase in energy consumption year-on-year (YoY). As a result, a number of crypto mining companies have been forced to sell off equipment, while others have filed for bankruptcy.
Yet, this hasn’t been the case for some miners, particularly those focused on clean energy solutions and strategic approaches. For example, in September, crypto mining firm CleanSpark announced an agreement to acquire Mawson’s Bitcoin mining facility in Sandersville, Georgia, for $33 million. The crypto mining company White Rock Management also recently expanded its mining operations to Texas.
Matthew Schultz, executive chairman of CleanSpark, told Cointelegraph that he views mining as a unique way to decrease energy costs when leveraged for reasons other than making profits. According to Schultz, this perspective has differentiated CleanSpark from other crypto-mining companies. “Bitcoin mining is a potential solution for creating more opportunities for energy development,” he said.
Schultz elaborated that CleanSpark partners with cities in the United States, like Georgia and Texas, to buy excess energy. For example, he noted that CleanSpark works with local areas in Georgia that receive energy from the Municipal Electric Authority of Georgia.
“These cities essentially become our utility provider. They make a margin on every kilowatt hour we buy to conduct our mining operations. Yet, we are buying such high
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