Crypto bear market will provide ‘excellent’ M&A opportunities: White Rock CEO

CoinTelegraph

White Rock Management CEO Andy Long believes bear markets “present excellent opportunities” for expansion via mergers and acquisitions in the crypto mining sector.

Speaking with Cointelegraph, the crypto mining company CEO noted that companies who have managed their balance sheets effectively are in “great shape” during this bear market, and will continue to do well even if there’s more volatility to come.

How To Get Free Crypto  

“The bear market has presented challenges for the miners who leveraged up at the top of the market, however, the sector has been here before, and well capitalized and efficient miners will do just fine,” he said.

Long suggested that the current bear trend will provide key merger and acquisition opportunities for such companies, as they will have proven to investors that they can survive extreme market conditions:

“Bear markets actually present excellent opportunities, so we expect to see M&A and consolidation activity in the mining sector involving both public and private players — to realize economies of scale and combine complementary operations.”

“We’ll also see network growth picking up again, not to the level forecasted at the end of the year, but we’ll likely be at least 20% higher by year-end,” he added.

Long also noted that the Texas mining sector has done well despite the ongoing heatwave. He noted the sector’s effective coordination with the Electric Reliability Council of Texas (ERCOT) to overcome energy supply issues over the past couple of months:

Coinbase Banner  

“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 weather, and we see continued growth ahead across the state.”

White Rock is a crypto mining firm based out of Switzerland, that claims to have around 24 MegaWatts worth of plant capacity installed.

In June announced plans to expand its operations to the U.S., starting with Texas. As part of the move, White Rock partnered with Natural Gas Onsite Neutralization (NGON) to operate out of its facility which utilizes “environmentally responsible” methods to mine Bitcoin (BTC).

Heat waves

As previously reported on July 11, mining firms such as Riot Blockchain and Core Scientific powered down parts of their Texas mining operations in June to reduce stress on the energy grid following temperatures rising well over 100 degrees.

Both f were proactive in easing the pressure on Texas’ energy supply, but another contributing factor was that energy prices had soared amid the heat wave.

FreeBitcoin Banner  

Related: Will the Bitcoin mining industry collapse? Analysts explain why crisis is really opportunity

As a result of the move, the firms suffered reduced mining productivity. However, with the price of BTC gaining 14.7% over the past month, and with temperatures looking set to drop slightly to around the 90-degree mark, there is a feeling that miners will be switching their machines back on as the BTC mining profitability will be too good to ignore.

“The Bitcoin price increase has led to increased profitability for miners and some miners who were pushed offline in June and July have likely plugged in their machines again,” noted Jaran Mellerud, a crypto-mining analyst at a research firm Arcane Crypto, in an interview with Bloomberg on Aug. 5.

The price of Bitcoin is sitting at $23,088 at the time of writing. 

Go to Source
Author: Brian Quarmby


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.