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Public mining company troubles
70 sats \ 4 comments \ @2big2fail 17 May 2022 bitcoin
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.
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1 sat \ 0 replies \ @2big2fail OP 17 May 2022
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
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1 sat \ 1 reply \ @BTCMiner 17 May 2022
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
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1 sat \ 0 replies \ @BTCMiner 17 May 2022
And, here is an article on the call from BeInCrypto:
Stronghold burns coal remains from centuries of mining in Pennsylvania, preventing the sometimes 200-feet deep piles of waste from poisoning the soil and emitting harmful chemicals into the atmosphere.
Waste coal is more toxic to the environment than “new” coal, containing mercury, sulfur, and lead, to name a few.
It is also burned in what is known as a fluidized bed, where combustion takes place to convert the waste coal to energy, a process requiring more energy than burning traditional coal.
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
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0 sats \ 0 replies \ @kilianbuhn 17 May 2022
Interesting subject. There are always treasures to be found on seeking alpha.
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