White Rock Management CEO Andy Long believes that bear markets “present excellent opportunities” for expansion via mergers and acquisitions in the crypto mining sector.
Speaking to Cointelegraph, the crypto mining firm’s CEO noted that companies that have managed their balance sheets effectively are in “great shape” during this bear market and will continue to do well even if there are more future volatility.
“The bear market presented challenges for miners who took advantage at the top of the market, however, the sector was already there, and well-capitalized and efficient miners will do very well,” he said.
Long suggested that the current downtrend will provide key M&A opportunities for these companies as they have proven to investors that they can survive extreme market conditions:
“Bear markets actually present great opportunities, so we expect to see mergers and acquisitions and consolidation activity in the mining sector involving both public and private players – to achieve economies of scale and combine complementary operations.
“We will also see network growth pick up again, not at the level expected 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 done well despite the ongoing heat wave. He noted the industry’s effective coordination with the Electric Reliability Council of Texas (ERCOT) to overcome power supply issues over the past two months:
“There’s a ton of activity in Texas and the mining sector is in great shape. Grid-connected miners are working with ERCOT to provide demand response during challenging times, and we anticipate continued growth across the state.
White Rock is a Swiss-based crypto mining company, which claims to have a rig capacity of around 24 megawatts.
In June, announced its intention to expand its operations in the United States, starting with Texas. As part of the move, White Rock has partnered with Natural Gas Onsite Neutralization (NGON) to operate from its facility which uses “eco-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 mining operations in Texas in June to reduce stress on the energy grid after temperatures rose over 100 degrees. .
The two fs were proactive in easing pressure on Texas’ energy supply, but another contributing factor was that energy prices had soared amid the heat wave.
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As a result of this move, companies suffered a decline in mining productivity. However, with the price of BTC gaining 14.7% over the past month and temperatures expected to drop slightly around the 90 degree mark, there is a feeling that miners will turn their machines back on as the profitability of the BTC mining will increase. be too good to be ignored.
“The increase in the price of Bitcoin has led to increased profitability for miners and some miners who were taken offline in June and July likely have their machines back online,” noted Jaran Mellerud, a crypto mining analyst at a mining firm. research Arcane Crypto, in an interview with Bloomberg on August 5.
Bitcoin price stands at $23,088 at the time of writing.