Bitcoin mining firms have had to do a lot to show that they are not just about extracting units from the blockchain to be added to circulation. There is a reason for this: in showing they’re not just about bitcoin mining, they have hopes of staying in business.
Bitcoin Mining Companies Need New Ways to Garner Funds
One of the big things bitcoin mining companies need to do now is show that they can make it in other arenas. This is because the bitcoin mining space is tanking hard at the time of writing. Crypto prices, as we all know, have been falling into the doldrums for the past year. Since November of 2021 – when bitcoin last hit its latest all-time high of about $68,000 per unit – the world’s number one digital currency has been crashing and burning. At press time, it is hovering in the $18K range, thus having lost more than 70 percent in 12 months.
The crypto space has also shed more than $2 trillion in overall valuation, meaning it’s facing the most bearish conditions of its 13-14 years in business.
Unless a bitcoin mining firm has only up-to-date equipment and rigs on hand, it’s unlikely to at least break even. As a result, many are having to venture into outside territory and get involved in other activities as a means of earning revenue and staying afloat.
Applied Blockchain CEO Wes Cummins is very familiar with how this all works as he’s having to undergo several changes himself to keep his company up and running. He’s now having to change his firm’s name to Applied Digital. The goal? To show that they’re not just bitcoin miners. The name change is currently waiting to be voted on by shareholders. Should they approve the change, the name will become real and official in the coming weeks.
Not wasting any time, the company has already changed its logo and the name on its website. Clearly, executives believe that shareholders aren’t going to show any objection to the name alteration. Despite all these switches, Applied Digital still has several providers of bitcoin mining equipment and services – including Bitmain, F2Pool, and Marathon Digital (which recently signed a five-year contract with the firm) – as some of its top customers.
Cummins said in an interview:
I think Marathon is one of the best counterparties, if not the best of the publicly traded miners in the industry.
A Lot of Pressure to Become Green
One of the other main problems that bitcoin mining companies are facing is the fact that there is increasing pressure each day to utilize green energy and make the process of crypto mining – and the state of the planet – much healthier.
To this day, there are several reports being published on how bitcoin mining allegedly uses more electricity than developing nations.