Many public mining companies are grid power buyers with very little control of their power costs. Revenue per hash is declining significantly and many large miners will be in forced liquidation events unless conditions improve.
The CEO of Stronghold Digital recently laid this out on their quarterly call https://static.seekingalpha.com/cdn/s3/transcripts_audio/4512345.mp3. It gives insight into how mining will ultimately only exist on a large mega scale when integrated into another business. Small miners will be fine if they have additional cash flow.
Mining "only" as a business is a temporary blip due to public market restriction to bitcoin backed products.
Here's a transcript of the call:
Stronghold Digital Mining, Inc. (SDIG) CEO Gregory Beard on Q1 2022 Results - Earnings Call Transcript
https://seekingalpha.com/article/4512345-stronghold-digital-mining-inc-sdig-ceo-gregory-beard-on-q1-2022-results-earnings-call
And, here is an article on the call from BeInCrypto:
Stronghold Mining Posts Q1 Results Amid Growing Scrutiny of Coal-Fired Mining
https://beincrypto.com/stronghold-mining-posts-q1-results-amid-scrutiny-of-coal-fired-mining
they claim that it will be more profitable to sell power to the grid if they have a price less than $22k per bitcoin.
i suspect we see non vertically integrated miners with power trading desks as a way to diversify revenue and hedge hash price risk
Interesting subject. There are always treasures to be found on seeking alpha.