Mining company Marathon Digital Holdings will continue to accumulate reserves in the first cryptocurrency despite the price drop. This was reported to Cointelegraph by Vice President Charlie Schumacher.

He said while the firm’s operations were “unaffected by the macroeconomic environment”, it was “in a good position” to weather the current market downturn.

“For reference, the cost of producing 1 BTC for us in the first quarter of 2022 was about $6,200. We also have a fixed price for electricity, so we are not subject to changes in the energy market,” said Schumacher.

He emphasized that Marathon had a significant impact on its financial results, as it reports the price of Bitcoin in dollars. However, for an objective assessment of activities, the company prefers to focus on cryptocurrency production, said Schumacher.

“Of course, bitcoin is worth less per dollar at the time of production, but if you believe the asset price could rise in the long run, then earning more BTC is never a bad thing,” the vice president said. Marathon.

As of May 31, the company has accumulated 9941 BTC on its balance sheet. Marathon has not sold the mined cryptocurrency since October 2021.

$MARAMay 2022 #bitcoins Production and miner setup update released:

– 19,000 miners (c. 1.9 EH/s) ready to be energized
– Total #BTC holdings = 9,941 BTC #HODL
— Still on track to reach 23.3 EH/s in early 2023https://t.co/tgDetL9upF

— Marathon Digital Holdings (@MarathonDH) 9 June 2022

For the first quarter of 2022, the company generated 1,258.6 BTC and recorded a net loss of $13 million.

According to Schumacher, lowering the price of bitcoin will force inefficient miners to exit the market and reduce the difficulty of issuing new blocks. He believes this will allow those who continue to work to acquire more digital gold.

By June 18, the hash rate associated with the difficulty of mining had dropped by more than 10% compared to the maximum reached a few days ago. At the time of writing, the Hashrate Index adjusted seven-day moving average is 208 EH/s.

Already on June 16, experts from the CryptoRank analytical platform stated that the price of BTC has reached the average cost of mining. This meant that for a certain number of cryptocurrency miners, the activity became unprofitable.

#BTC Price Drops To Average Mining Cost

due to a significant decrease $BTC price in recent months, $mining became less profitable. Some #Bitcoin miners may even be unprofitable at the moment.

https://t.co/nYhYMYoYXp pic.twitter.com/WOjCUSkG7x

— CryptoRank Platform (@CryptoRank_io) 17 June 2022

IDEG Singapore Investment Director Markus Thelen noted that most miners calculate their annual budgets at the end of 2022 when the market is in other conditions. Because of this, the company believes that some small businesses in the industry that lack economies of scale will shut down the equipment. According to IDEG Singapore, breakeven levels are $26,000-28,000 per 1 BTC.

On June 18, the price of the first cryptocurrency fell below $18,000. After the recovery, Bitcoin is trading near the $20,000 level.

Recall that in April, Arcane Research analysts named Marathon were the most valued stock among publicly traded mining companies.

In June, Marathon offerings were among the leaders in terms of decline in the cryptocurrency-related market sector.

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