Bitcoin miners in the United States are expecting to double the hash power of their mining operations through 2022. Other global players have been selling their Bitcoin in order to secure cash.
Despite Bitcoin’s (BTC) three-month downturn, cryptocurrency mining farms in the United States remain devoted to boosting their capacity with new technology.
Marathon Digital Holdings and GEM Mining, both based in the United States, said this week that they anticipate their respective mining operations to expand by at least double in size by 2022.
Marathon Digital’s vice president of corporate communications, Charlie Schumacher, said in an interview that the company is proceeding with plans to install 199,000 additional machines by 2023. This will be done in order to guarantee what is “arguably the future of the global monetary system.”
According to GEM Mining CEO John Warren, the company “plans to have 32,000 miners online by the end of 2022”.
Marathon’s capacity would more than double if its plans are carried out, while GEM’s capacity would more than double if they are carried out.
It is quite surprising that miners are increasing their operations. Concerns were raised late last week over miners’ capital efficiency, as it was claimed that many were selling off BTC to preserve cash reserves. Marathon Digital filed with the SEC on Feb. 13 to sell up to $750 million in shares.
Schumacher, on the other hand, underlined that the firm is keeping its options open
“In a position to better work with capital markets” while it seeks the most economically effective path to expansion. He said that “filing to shelf does not always imply that they are selling. Everything we do is geared at maximising optionality”. He went on:
“We can’t control the price of BTC. But, we can control how we react to the market. We believe we are in a position to act opportunistically.”
Warren feels upbeat about the expansion of his company’s size. He also said that GEM has not sold any BTC to date.
His attitude is influenced partly by the potential capital efficiency given by recently proposed tax breaks in Illinois and Georgia.
If enacted, the Illinois law would provide tax advantages for crypto mining data centres, while Georgia would lower taxes on crypto mining power.
Whereas Marathon’s approach looks to be focused on increasing income streams, GEM is looking for methods to cut costs. Warren added: “State tax incentives for mining are very advantageous to enterprises like GEM Mining because of their influence on the cost of energy usage”.
“Energy is one of the most significant inputs for mining operations. Tax breaks that exempt the sale or use of electricity can assist with reducing overhead costs and maintaining cash flows.”
“Energy is a crucial input for mining operations, and tax credits that exclude the sale or usage of power may help reduce overhead costs and sustain cash flows.”
Warren, on the other hand, said that we are “likely in a short-term pessimistic attitude inside the market”. He finished by stating:
“I anticipate there will be continued investment in Bitcoin and the larger crypto space, regardless of short-term volatility.”