The Bitcoin community might have been going through a lot of stress due to the price fluctuations that are recently taking place with the cryptocurrency, but U.S. Bitcoin miners seem to have another game going on here.
According to Dent crypto news today, some of the major Bitcoin miners in the United States of America have expectations to basically double the capacity that they have through 2022 while some of the other global operations have actually been selling Bitcoin in order to make sure that cash reserves are secured.
The mining operations of Crypto that are based in the United States of America are completely committed to making sure that the hash power is increased along with the hardware options despite Bitcoin going through a pretty huge downtime over the past few months.
The GEM Mining companies as well as the Marathon Digital Holdings in the U.S. said in an interview this week that they basically have expectations that the size of the different operations that they have will grow through 2022. This will be achieved with the growth of the machine numbers that are present in the facilities.
Marathon Digital’s VP of corporate communications Charlie Schumacher said in an interview that it is moving forward with plans to deploy 199,000 new machines by 2023 to secure what is “arguably the future of the global monetary system.” GEM Mining CEO John Warren said via email that it “plans to have 32,000 miners online by the end of 2022.”
For Marathon, that would be more than a six-time increase in size whereas GEM’s capacity would definitely double in case it goes through with the different plans. The fact that miners are expanding their operations comes as somewhat of a surprise Marathon Digital filed with the SEC to sell up to $750 million worth of its stock on the 13th of February.
However, Schumacher clarified that the company is keeping its options open and “is in a position to better work through capital markets” while it looks for the most economically efficient way towards growth. He said that “filing to shelf doesn’t mean they are necessarily selling.
Everything we do is about increasing optionality.” He continued “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 shares optimism about growing his company’s scale. He told Cointelegraph that GEM has also not sold any BTC to date. His temperament can be derived in part from the potential capital efficiency provided by newly proposed tax incentives in Illinois and Georgia.
If passed, the Illinois bill would offer tax breaks for crypto mining data centers, while Georgia would reduce taxes on electricity used for crypto mining.
Whereas Marathon’s strategy appears to be securing greater sources of revenue, GEM is seeking out ways to reduce expenses.
Warren said, “State tax incentives for mining are tremendously beneficial to companies like GEM Mining due to their effects on the cost of energy use.” “Energy is one of the most significant inputs for mining operations, and tax breaks that exempt the sale or use of electricity can assist with reducing overhead costs and maintaining cash flows.”
Both Schumacher and Warren have made an acknowledgment regarding the possibility of commotion in Bitcoin prices over the next few months to come.
Schumacher said that he would not make a comment on whether the people are inflowing a “crypto winter”. However, he also made it pretty clear that the company will put the main focus on “decreasing risk and making sure that we can pivot.”
Also, Warren made a comment that we are “more likely in a short-term bearish sentiment within the market.” He made a conclusion by saying that “I anticipate there will be continued investment in bitcoin and the larger crypto space, regardless of short-term volatility.”