Cryptocurrency Bear Market Will Bring ‘Excellent’ M&A Opportunities: White Rock CEO

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

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

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

Long suggested that the current downtrend will provide key M&A opportunities for such companies as they will have shown investors that they can survive in extreme market conditions:

“Bear markets actually present excellent opportunities, so we expect to see mergers and acquisitions and consolidation activities in the mining sector involving public and private players, to achieve economies of scale and combine complementary operations.”

“We will also see network growth pick up again, not at the level forecast by the end of the year, but we will probably be at least 20% higher by the end of the year,” he added.

Long also noted that the Texas mining sector has been doing well despite the ongoing heat wave. He pointed to the industry’s effective coordination with the Electric Reliability Council of Texas (ERCOT) to overcome power supply issues in recent months:

“There is a lot of activity in Texas and the mining sector is in very good shape. Grid-connected miners are working with ERCOT to provide demand response during challenging weather, and we see continued growth across the state.”

White Rock is a Swiss-based crypto mining company, which claims to have installed plant capacity of around 24 megawatts.

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In June it announced plans to expand its operations into the US, starting with Texas. As part of the move, White Rock has partnered with Natural Gas Onsite Neutralization (NGON) to operate from its facilities that use “environmentally responsible” methods to mine Bitcoin (BTC).

Heat waves

As previously reported on July 11, mining companies including Riot Blockchain and Core Scientific shut down parts of their mining operations in Texas in June to reduce stress on the power grid after temperatures rose above 100 degrees.

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

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As a result of the measure, the companies suffered a reduction in mining productivity. However, with the price of BTC rising 14.7% over the past month, and with temperatures appearing to drop slightly to around the 90 degree mark, there is a feeling that miners will turn their machines back on as they go. that the profitability of BTC mining increases. be too good to ignore.

“Bitcoin’s price increase has led to increased profitability for miners and some miners who went offline in June and July have likely reconnected their machines,” noted Jaran Mellerud, a crypto mining analyst at research firm Arcane Crypto, in a interview with Bloomberg on August 5.

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