Andy Long, CEO of White Rock Management, believes the bear market “presents a golden opportunity” for expansion through mergers and acquisitions in the crypto mining sector.
Speaking to Cointelegraph, the crypto mining company’s CEO said companies that manage their balance sheets effectively are in “excellent shape” during this bear market and will do well even with more volatility. said to keep.
“The bear market has presented challenges for leveraged miners at the top of the market, but the sector has been around for a long time and well-capitalized efficient miners will do well,” he said. Told.
Long suggests that the current bearish trend will provide significant merger and acquisition opportunities for such companies.
“Because the bear market really presents a great opportunity, we believe we will see M&A and consolidation activity in the mining sector involving both public and private players to achieve economies of scale and combine complementary businesses. I anticipate.”
“Also, while network growth will not reach the levels projected at the end of the year, it could increase by at least 20% by the end of the year,” he added.
Long also said the Texas mining sector is doing well despite the ongoing heat wave. He pointed to the sector’s effective coordination with the Texas Electricity Reliability Council (ERCOT) to overcome energy supply problems over the past few months.
“There is a lot of activity going on in Texas, and the mining sector is doing great. We are seeing continued growth.”
White Rock is a Switzerland-based cryptocurrency mining company that claims to have around 24 megawatts worth of installed plant capacity.
In June, it announced plans to expand its operations to the United States, starting with Texas. As part of this move, White Rock has partnered with a Natural Gas Onsite Neutralization (NGO) to operate off-site utilizing a “green” method for mining Bitcoin (BTC). Did.
As previously reported on July 11th, mining companies such as Riot Blockchain and Core Scientific will move to Texas in June to ease stress on the energy grid after temperatures well above 100 degrees. has powered down some of its mining operations.
Both were active in relieving pressure on Texas’ energy supply, but soaring energy prices amid the heat wave were also a contributing factor.
Related: Will the Bitcoin mining industry collapse? Analyst explains why the crisis really is an opportunity
As a result of this move, the company suffered from declining mining productivity. However, with the price of BTC rising 14.7% over the past month and temperatures seeming to drop slightly to around 90 degrees, miners are switching their machines as BTC mining becomes less profitable. There is a feeling of turning it back on. too good to ignore.
“Bitcoin price increases have led to improved profitability for miners, and some miners that were taken offline in June and July likely reconnected their machines,” said research firm Arcane. Jaran Mellerud, Crypto Mining Analyst at Crypto, said: Interview with Bloomberg on Aug. 5.
Bitcoin price is $23,088 at the time of writing.