The downward trend of the cryptocurrency market has forced Bitcoin miners to implement the best possible strategies in order to increase the profitability of this activity.
Jason Les, CEO of Riot Blockchain, is very optimistic about the future of Bitcoin mining in the United States. He expressed his point of view regarding mining in an interview he gave to the financial segment of Yahoo!
According to Les, companies dedicated to Bitcoin mining that want to prevail in operation, beyond any bear market period, will have to learn to do it in the most efficient way possible.
The CEO of Riot, one of the companies in the United States when it comes to this industry, shared one of his strategies so that profits are not so affected by the market trend. These are blocks of electrical power that Riot has at its full disposal and that they pay under agreements other than the cancellation of a conventional invoice.
Electric power blocks are plans in which the company that manages the electric network provides the company or user with access to a certain amount of energy according to their average demand.
An advantage of these agreements, in addition to lowering the cost of energy, is that the surplus energy can be sold back to the local electricity platform. This makes it possible to minimize the possible losses that could be generated by mining with very low profitability or by partially or totally stopping the mining activity. In fact, Riot recently scaled back its mining output to favor the regional power park in Texas, where a summer heat wave has pushed up power demand and service costs.
Clean energy favors the profitability of Bitcoin miners, despite the red market
The CEO of Riot confesses that his expectations regarding the future, both near and far, of Bitcoin mining are totally positive. In his opinion, mining will continue to grow around the world and specifically in the United States. In this regard, he stressed that his company has expansion plans in the coming months.
I think we will continue to see an expansion [of mining], but we will see an expansion by more and more efficient operators. Efficiency and an electric power strategy are the key for those participants who want to be successful.Jason Les, CEO of Riot Blockchain.
Fortunately, one of the most productive ways to increase efficiency in mining is through the use of renewable energy sources. As the market has been falling, new bitcoin mining projects have been emerging whose profitability rests on generating their own electricity by taking advantage of available resources. Some examples are the solar-powered mining farms that Blockstream wants to build, with the support of Elon Musk and Jack Dorsey, or Aspen Creek, whose main headquarters can feed more than 3,000 Antminer S19 model ASIC miners