'The Reckoning' & 'The Best Time' to Enter Bitcoin Mining as Firms Diversify Amid Bear Market
Some Bitcoin (BTC) and crypto miners are working to diversify their operations amid the bear market, trying to gain revenue streams unrelated to mining. At the same time, the current market reveals “who has been conservative and who has been ‘apeing’ in,” panelists at a mining discussion agreed.
Speaking in the online panel discussion hosted by European digital asset investment firm CoinShares on Wednesday, Sue Ennis, Vice President (VP) of Corporate Development at Hut 8 Mining, said her firm had already taken steps to diversify its revenue streams ahead of the bear market.
The firm has taken steps such as employing yield generation strategies on BTC it holds in its inventory, earning “anywhere from 2% to 4% on about 2,000 bitcoin [USD 42m] held in inventory, which was great,” per the VP.
In addition, Ennis said the mining firm has secured revenue streams from datacenter customers unrelated to mining through five datacenters it procured.
“That deal came with 400 existing enterprise customers,” she said, adding that this has helped the firm earn higher returns on its invested capital while diversifying its revenue streams away from only mining BTC.
Commenting on how the current bear market is affecting miners, Chris Bendiksen, Bitcoin Research Lead at CoinShares, said we are now entering “the reckoning” where it’s going to be very clear “who has been conservative and who has been ‘apeing’ in” to mining.
“You really need to take a long-term view on this, and not get super excited just because prices are ripping or mining is hyper profitable. You have to kind of look at some averages, and see whether or not you can tackle the worst of conditions,” Bendiksen said.
Amanda Fabiano, Head of Mining at Galaxy Digital, agreed, saying
Read more on cryptonews.com
