Marathon announced earlier this month that it had been stockpiling or “hodling” Bitcoin since October 2020. The corporation had roughly 9,941 BTC on June 1, 2022.
Despite data suggesting that the price of Bitcoin (BTC) has dropped to the point where it is no longer profitable for the ordinary miner, Marathon Digital Holdings says it will continue to accumulate the main crypto asset.
Company claims that it isn’t immune to the macro environment. It is fairly well insulated and well-positioned.
According to Schumacher, Marathon Digital’s VP of Corporate Communications, the company has been focusing more on Bitcoin production and accumulation. They bear the conviction that the crypto currency would continue to appreciate in the long run.
“Because we disclose our financial results in US dollars, the price of Bitcoin will always have a significant impact on our financial results. We aim to focus more on our Bitcoin output to objectively evaluate our progress inside. It’s crucial to remember that Bitcoin mining is a zero-sum game,” he added.
Indeed, as the price of Bitcoin falls, so does the number of people who can continue to mine economically, forcing inefficient miners out and lowering the difficulty of mining new blocks, according to Schumacher. Those who are able to continue mining when the difficulty rate drops have the possibility to earn more bitcoin.
After China’s crackdown on cryptocurrency mining facilities a year ago, the hash rate market dropped from 180.666 in May 2021 to 84.79 in July 2021, resulting in a more apparent effect.